Indonesia cuts $9.8bn EV battery investment MoU deal with S. Korea’s LG Group

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Indonesia cuts $9.8bn EV battery investment MoU deal with S. Korea’s LG Group

Amid a likely demand-surge of EV batteries over the coming years with more and more countries looking to a green energy alternative in order to prevent emissions and climate change, head of Indonesia’s Investment Coordinating Board had issued a statement later this week saying that Indonesia, South-east Asia's one of the largest emerging market economies, and an arm of S.

Korea’s energy industry behemoth LG Group had rubber stamped an MoU (Memorandum of Understanding) deal under the terms of which the LG Group’s EV battery unit had agreed to invest as many as $9.8 billion in the country.

Aside from that, speaking in a news conference later this week, the head of the country’s Investment Coordinating Board, Bahlil Lahadalia was quoted saying that the deal was signed on December 18, while it would include a swathe of sectors related to e-vehicle supply chain in the South-east Asian emerging market economy.

Nonetheless, while having been asked for the detail of a $9.8 billion EV battery investment MoU reached with the Indonesian Government, a top official of LG Energy Solution, an energy unit of the S. Korea’s fourth-largest conglomerate, LG Group, had confirmed that it had reached an MoU with the Indonesian Government, but had declined to detail the financial terms of the deal.

Indonesia to integrate EV battery industry with lithium mining, says Bahlil

Meanwhile, expressing an out-out-out optimism over the deal, Bahlil said later this week, “We have signed an MOU for the construction of an integrated electric battery factory from upstream to downstream.

Mines, smelters, precursors, cathodes, cars to recycling facilities will be built in Indonesia,” adding that the South-east Asian country would be the first across the globe to integrate a rapidly evolving EV-vehicle industry with mining of lithium, a precursor to e-vehicle batteries.

On top of that, Bahlil had also added on Wednesday’s press conference that a large chuck of $9.8 billion in EV battery venture from LG Energy Solutions would be invested in a project located in North Maluku alongside Central Java.