South Korean conglomerate LG has withdrawn from a major electric vehicle (EV) battery supply chain project in Indonesia, valued at approximately 11 trillion won (USD 8.45 billion). The project was part of the Indonesia Grand Package, an initiative launched in 2020 to develop an integrated EV battery ecosystem in partnership with the Indonesian government and state-owned enterprises. 

The LG-led consortium – comprising LG Energy Solution, LG Chem, and LX International – had aimed to establish a full EV battery production chain, including nickel mining, precursor and cathode manufacturing, and battery cell production. 

"Considering market conditions and the investment environment, we have decided to exit the project," said an official from LG Energy Solution, as cited by Yonhap News. "However, we will continue our existing business in Indonesia, such as the Hyundai LG Indonesia Green Power (HLI Green Power) battery plant, our joint venture with Hyundai Motor Group". 

The HLI Green Power facility, located in Karawang, West Java, began operations in 2024 and has an annual production capacity of 10 gigawatt-hours (GWh). The joint venture remains active and is not affected by the consortium’s withdrawal from the Indonesia Grand Package. 

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) confirmed that the project framework remains unchanged. Minister Bahlil Lahadalia stated that the withdrawal only impacts three joint ventures proposed by LG and that Zhejiang Huayou Cobalt Co., a Chinese firm, will step in as a new investor. “The infrastructure and production plans are still aligned with the original roadmap,” Bahlil said, according to Antara News. 

The Indonesia Grand Package was launched following an agreement between the Indonesian government and LG Energy Solution in December 2020. The initiative aimed to cover the full EV battery supply chain—from mining and raw material processing to precursor and cathode production, and final battery assembly. 

As part of this initiative, the state-owned Indonesia Battery Company (IBC) partnered with the LG consortium under a sub-project called Project Titan. This sub-initiative planned five joint ventures with a total target of producing 30 GWh of EV batteries annually by 2026. However, feasibility study discussions between IBC and LG eventually stalled, and in early 2023, LG delegated its negotiation responsibilities to Zhejiang Huayou Cobalt. 

On April 17, MIND ID’s portfolio director, Dilo Seno Widagdo, confirmed LG’s withdrawal from Project Titan. He also announced that MIND ID would continue EV battery development under the Dragon Project, a new initiative in cooperation with China’s Ningbo Contemporary Brunp Lygend Co. Ltd., a subsidiary of CATL.