South Korea’s LG Group is strengthening its battery investment in Indonesia, committing an additional $1.7 billion to a joint venture battery cell factory in West Java. The move raises LG’s total investment in the project to $2.8 billion, according to Indonesia’s investment minister, Rosan Roeslani.
The announcement comes shortly after LG Energy Solution (LGES) confirmed its withdrawal from a separate $8.46 billion electric vehicle (EV) battery supply chain venture in Indonesia. That project, valued at 142 trillion rupiah, faced delays amid market uncertainties and challenging investment conditions.
LG Remains Committed to West Java Project
Despite pulling out of the larger initiative, LG’s commitment to its ongoing partnership with Hyundai Motor Group through HLI Green Power remains firm. “The commitment from LG remains big,” Minister Roeslani said at a press conference. “A concrete example is that they will invest in the development of this joint venture.”
Last year, HLI Green Power inaugurated Indonesia’s first battery cell manufacturing facility, located in West Java, with an annual capacity of 10 gigawatt hours. The venture now moves into its second investment phase with the newly announced funding.
Shift in JV Participation
While LGES is stepping back from the broader EV supply chain initiative, Chinese firm Zhejiang Huayou Cobalt will take its place in that project. Indonesian authorities confirmed the change, ensuring continuity in the country’s long-term battery production goals.
Although LGES has yet to comment publicly on Tuesday’s investment update, officials remain optimistic about the future of the West Java battery plant and its potential to anchor Indonesia’s emerging EV ecosystem.
The expanded LG battery investment in Indonesia reflects a strategic pivot. Rather than stretching resources across multiple massive ventures, LG appears to be narrowing its focus to scalable projects with clearer commercial potential.
As competition grows in Asia’s battery market, the commitment from LG and Hyundai signals Indonesia’s importance as a production hub for the global EV industry.
