LG Drops Out of Indonesia’s RM37B Titan Project

South Korea’s LG Energy Solution (LGES) has pulled the plug on its massive US $7.7 billion (RM 37 billion) EV battery venture with Indonesia Battery Corporation (IBC), known as the "Titan Project." 

The announcement, made on April 18, 2025, marks a big shift in the global electric vehicle battery game.

The Titan Project was a huge part of Indonesia’s plan to climb the value chain in battery manufacturing. With the country sitting on some of the world’s largest nickel reserves, the project was supposed to turn those resources into high-value battery components and put Indonesia on the map as a battery powerhouse.

But things have changed. According to Discovery Alert, experts are pointing to what's being called the “EV chasm” - a global slowdown in demand for electric vehicles - as a key reason behind LGES’s decision. With the market cooling off, companies are being a lot more cautious about expanding.

As reported by Antara News, Fathul Nugroho from Indonesia’s Energy, Mineral, and Coal Suppliers Association (Aspebindo) said the cancellation is a serious blow. The Titan Project was expected to be the backbone of Indonesia’s EV battery ecosystem. Now, those production targets are likely to be delayed.

Nugroho also warned that without LGES, Indonesia risks missing out on vital tech transfers - especially when it comes to turning raw nickel into high-quality battery materials like precursors and cathodes. That’s where a lot of the value lies, and not being able to do that locally could leave the country more dependent on imports.

He added that the setback shows just how much Indonesia needs stronger and more resilient downstream policies. That includes making sure there are solid strategies in place to attract long-term, strategic investment in the industry.

LGES’s exit will surely send ripples through the industry. It’s a reminder that even in fast-growing sectors like EVs, global trends can shift quickly - and when they do, the impacts are felt far and wide.