Indonesia has confirmed that a US$9.8 billion electric vehicle (EV) battery investment project will move forward, but with China’s Zhejiang Huayou Cobalt Co stepping in as strategic investor following the pullout by South Korea’s LG Energy Solution (LGES).

Bahlil Lahadalia, Indonesia’s minister of energy and mineral resources, said in a statement on Wednesday (Apr 23) that the Titan Project is still on track, despite global geopolitical tensions and economic uncertainties.

He emphasised that the core plan and production timeline will proceed as originally scheduled, with groundbreaking set to take place later this year.

“We want to make it clear that this project is not impacted by global dynamics such as wars or economic uncertainty. Changes in investors are a normal part of large-scale projects, and our ultimate goal remains unchanged: to position Indonesia as a global hub for the electric vehicle industry.”

China’s Huayou will team up with Indonesia’s state-owned mining companies, including Indonesia Battery Corp, through a joint-venture arrangement to produce EV batteries.

In a statement last week, LGES, with LG Chem, LX International Corp and other consortium partners, announced their decision to withdraw from their planned investment in the project, which is one of the country’s five major EV battery mega projects.