LG Energy Pulls Out of $8.5 Billion Indonesia EV Battery Project

LG Energy Solution Ltd. withdrew from an 142 trillion rupiah ($8.45 billion) partnership with Indonesia to build a full electric vehicle battery supply chain, a blow to the country’s ambitions to become a major hub for the technology.

The South Korean firm pulled out due to various factors including “market conditions and investment environment,” it said in a statement on Monday. The memorandum of understanding for the so-called Grand Package project was signed in 2020, and envisaged a suite of investments in cooperation with Indonesian state-owned enterprises.

LG’s withdrawal is a setback for Indonesia, which has tried to leverage its ...