April 25, 2025: Indonesia’s ambition to become an EV battery manufacturing hub in Asia have been dealt a major blow with LG Energy Solution’s withdrawal from a partnership project, say industry leaders.

Fathul Nugroho, deputy chairman of the Indonesian Energy, Mineral and Coal Suppliers Association, confirmed the South Korean battery giant’s withdrawal as leader of a consortium for the so-called Titan project on April 22.

A statement from LGES said the cancellation was the result of “various factors, including market conditions and investment environment”.

Nugroho told Indonesia’s Antra news agency the cancellation of the project anchored by LGES and the Indonesia Battery Corporation, would force a postponement of domestic production plans for nickel-based EV batteries.

He said Titan had been expected to be the backbone of his country’s nascent battery ecosystem, drawing on its domestic nickel-producing capabilities.

The project aimed to encompass the entire battery processing chain, from raw material procurement to precursor production, cathode materials, and battery cell manufacturing.

LG’s withdrawal could also delay the transfer of technology needed to process nickel into high-quality battery materials, Nugroho said.

“Losing the opportunity for technology transfer in this high-value sector could widen our dependence on imports.”

LGES unnerved investors on January 9 by reporting an operating loss of KRW223 billion ($154 million) for the fourth quarter of 2024.

In a related move, South Korea scrambled to shore up the country’s faltering battery sector with an initial cash infusion worth close to $15 billion, as a global slump in EV sales takes its toll on the industry.