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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] The $9 billion battery value chain project, which had been pursued by the LG Consortium in partnership with the Indonesian government, has been canceled. According to industry sources on Sunday, the LG Consortium decided to withdraw from the "Grand Package Project" after recent discussions with the Indonesian government.
In 2022, LG Energy Solution, alongside LG Chem, LX International, POSCO, and Chinese company Huayou, formed a consortium to develop a comprehensive battery value chain. This included the mining of nickel, refining, precursor production, cathode manufacturing, and battery cell production in Indonesia.
The project aimed to establish a complete battery value chain in collaboration with the Indonesian government and state-owned enterprises, with an estimated project scale of approximately 11 trillion KRW ($9 billion). The consortium had initiated the project to secure a stable supply of raw materials for batteries, which had seen significant price increases, while also enhancing its long-term battery business capabilities and profitability.
However, recent shifts in the electric vehicle market, including a temporary stagnation in demand, and changing investment conditions led to the final decision to cancel the project.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
