April 25, 2025 | Jakarta — China’s Zhejiang Huayou Cobalt will replace South Korea’s LG Energy Solution (LGES) as the strategic investor in a major electric vehicle (EV) battery project in Indonesia, according to Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia.
Huayou Cobalt Replaces LGES
Speaking earlier this week, Bahlil confirmed that LGES has officially withdrawn from the investment consortium. The project, valued at approximately 142 trillion Indonesian rupiah (around $8.42 billion), will now move forward with Huayou Cobalt taking a leading role alongside Indonesian state-owned enterprises. A groundbreaking ceremony is expected later this year.
“The government remains fully committed to advancing the EV battery ecosystem in Indonesia,” said Bahlil. “We welcome Huayou Cobalt’s participation and are confident this collaboration will strengthen our position in the global EV supply chain.”
Huayou Expands Presence in Indonesia
Huayou Cobalt has been expanding its footprint in Indonesia’s nickel and battery materials sector. In 2023, the company partnered with Vale Indonesia to develop a high-pressure acid leach (HPAL) project in South Sulawesi, targeting an annual output of 60,000 tons of nickel and 5,000 tons of cobalt for battery manufacturing.
Indonesia’s EV Ambitions
Indonesia, home to some of the world’s largest nickel reserves, is positioning itself as a key player in the global EV industry. By attracting significant foreign investment into its battery and EV supply chains, the country aims to boost domestic value creation and reduce reliance on raw material exports.
With Huayou Cobalt’s new commitment, Indonesia’s ambition to become a major EV production hub in Southeast Asia is gaining further momentum.