Related reports allegeLG recently withdrew its investment in building an electric vehicle battery ecosystem in Indonesia, which it announced in 2019. The reason is that the growth of global electric vehicle market demand has slowed down, forcing LG to readjust its development layout in the electric vehicle market.
This project involves a US$77 billion investment and is being promoted by LG Energy Solution, LG Chem, LX International and Indonesian state-owned enterprises to develop a local electric vehicle battery ecosystem. The original plan was to leverage Indonesia's abundant nickel resources to build a complete supply chain from raw material procurement to battery production.
However, this plan has been progressing slowly since it was proposed in 2019. The main reason is that the global demand for electric vehicles has slowed down, causing LG to re-evaluate its electric vehicle market layout strategy and ultimately decide to terminate its original investment plan in Indonesia. However, it will continue to maintain its existing business in the Indonesian market, such as the HLI battery factory previously established in a joint venture with Hyundai Motor.
Although LG has terminated its electric vehicle battery ecosystem development in Indonesia, it will continue to develop its electric vehicle battery business and plans to invest 5 trillion won in South Korea over the next five years to develop battery technology and invest in battery materials projects. Other R&D projects include next-generation displays, artificial intelligence, and related technologies in the bio field.
