LG's withdrawal from the "Titan Project" may delay Indonesia's goal of becoming a hub for electric vehicle (EV) batteries, Deputy Chairman of the Indonesian Energy, Mineral, and Coal Suppliers Association (Aspebindo), Fathul Nugroho, stated.
"The cancellation of the Titan Project, which was a collaboration between LGES (LG Energy Solution) and Indonesia Battery Corporation (IBC), will postpone the production target for nickel-based EV batteries," Nugroho remarked here on Tuesday.
He noted that the Titan Project was expected to be the backbone of the national battery ecosystem development in the world’s largest nickel producer.
He also warned that LGES's withdrawal could delay the transfer of technology needed to process nickel into high-quality battery materials. He explained that the ability to process precursors and cathodes is key to increasing the added value of minerals.
"Losing the opportunity for technology transfer in this high-value sector could widen our dependence on imports," he remarked.
He explained that the LGES consortium's decision to cancel the EV battery project reflects global dynamics that must be addressed with more mature downstream policies.
That way, the active roles of the Downstream Task Force and the Ministry of Investment and Downstreaming are considered crucial to strengthen policy ecosystems and attract sustainable strategic investments.
LG's withdrawal from the project was reportedly influenced by external factors, including a global slowdown in EV demand and changes in LGES's corporate strategy.
"This is where the Ministry of Investment and Downstreaming needs to take a more aggressive role in opening new cooperation channels, while the Downstream Task Force can optimize cross-sector coordination to reduce structural barriers," Nugroho stated.
A South Korean consortium led by LG has reportedly decided to withdraw from an estimated 11 trillion won (IDR 130.7 trillion) project to establish an electric vehicle (EV) battery supply chain in Indonesia, according to Yonhap sources on Friday (April 18).
The consortium, which includes LG Energy Solution, LG Chem, LX International Corp, and other partners, had been collaborating with the Indonesian government and state-owned enterprises to develop an "end-to-end value chain" for EV batteries.
This initiative aimed to encompass the entire process, from raw material procurement to precursor production, cathode materials, and battery cell manufacturing.
