JAKARTA (Reuters) – China’s Zhejiang Huayou Cobalt is replacing South Korea’s LG Energy Solution as a strategic investor in one of Indonesia’s major EV battery projects, the country’s Energy and Mineral Resources Minister Bahlil Lahadalia said on Wednesday.
LGES on Monday announced its withdrawal from the 142 trillion rupiah ($8.42 billion) project.
Indonesia is keen to develop domestic processing industries to produce batteries and EVs to take advantage of its rich mineral resources.
“Change of investors is a common dynamic in large-scale projects,” Bahlil said in a statement, adding that there will be no change to the underlying plans for the project.
Huayou would be collaborating with Indonesian state-controlled companies on the project.
Bahlil said Indonesia remains committed to using its mineral resources domestically, and the government will ensure a smooth transition for the project.
A ground breaking ceremony for a part of the project is planned for later this year, he added, without sharing more details.
Huayou’s Indonesian unit did not immediately respond to a Reuters request for comment.
($1 = 16,870.0000 rupiah)
(Reporting by Bernadette Christina Munthe, Fransiska Nangoy; Editing by Himani Sarkar and Jan Harvey)
