China’s Zhejiang Huayou Cobalt Co. Ltd. has been confirmed as the new strategic investor in one of Indonesia’s major electric vehicle (EV) battery projects, replacing South Korea’s LG Energy Solution Ltd, according to a statement from Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, on Wednesday.
LGES announced its withdrawal from the 142 trillion rupiah (approximately $8.42 billion) initiative earlier this week. The project is a central part of Indonesia’s strategy to leverage its abundant mineral resources by developing a domestic EV and battery manufacturing industry.
“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 Cobalt will collaborate with Indonesian state-owned enterprises on the project. The Indonesian government has reiterated its commitment to utilizing the country’s natural resources within its borders and ensuring a seamless transition during the change in investment partners.
A groundbreaking ceremony for a portion of the project is expected to take place later this year, although further details were not disclosed. Huayou’s Indonesian subsidiary has not yet responded to a request for comment.
