LG Energy Solution, Indonesia sign MOU on battery cooperation

LG Energy Solution, the battery unit of LG Chem Ltd., has signed a memorandum of understanding with the Indonesian government’s investment authority to cooperate in the electric vehicle battery business. 

The signing ceremony, held in Seoul on Dec. 18, was attended by LG Energy Solution Chief Executive Kim Jong-hyun, Korean Trade Minister Sung Yun-mo and visiting Indonesian Investment Coordinating Board Chairman Bahlil Lahadalia.

The Indonesian delegation is in Seoul to sign the Comprehensive Economic Partnership Agreement (CEPA) between the two countries.

According to industry officials, the non-binding MOU was clinched at the request of the Indonesian government, which has been seeking Korean companies’ investment in the Southeast Asian nation.

LG Energy Solution said nothing has been decided yet on its investment in Indonesia.

Indonesia is home to the world’s largest reserves of nickel, a key material in EV batteries. Currently, the country is known to have 698 million tons of nickel in reserve.

LG Energy Solution, spun off from LG Chem on Dec. 1, has been seeking to secure a stable supply of raw materials used to make EV batteries.

Write to Man-Su Choe at bebop@hankyung.com
In-Soo Nam edited this article.