In a major development for Indonesia’s fast-growing electric vehicle (EV) sector, Chinese company Huayou Cobalt will replace South Korea’s LG Energy Solution (LGES) in a $9.8 billion EV battery project, with Indonesia’s Minister of Energy and Mineral Resources assuring that the project remains on track to strengthen the country’s ambition of building a full EV battery supply chain.
While no official reason was given for LGES’s withdrawal, industry insiders point to commercial disagreements and market shifts, and Huayou’s swift entry underscores Indonesia’s strong appeal to foreign investors seeking critical minerals like nickel and cobalt amid booming global EV demand.
The new partnership is expected to inject fresh technical expertise and investment, supporting Indonesia’s broader goal of not just exporting raw materials but manufacturing higher-value products, creating jobs, and driving the green energy transition at home.
Despite the major player change, Indonesian officials emphasize that construction timelines and investment pledges will proceed without disruption, reflecting the nation's growing confidence in securing a central role in the global green economy.
As this strategic shift unfolds, it highlights the increasingly complex interplay of geopolitics, economics, and innovation shaping the future of mobility and cements Indonesia’s rising influence in the 21st-century EV revolution.
