LG pulls out of RM37bil Indonesia EV battery project

LG Pulls Out of RM37bil Indonesia EV Battery Project – What It Means for Malaysia

In a shocking twist for Southeast Asia’s EV ecosystem, LG Energy Solution has officially withdrawn from its RM37 billion electric vehicle battery project in Indonesia. This high-profile exit sends ripples across the region, especially for Malaysia, which has been closely monitoring developments in EV production and battery supply chains.

But what does LG's departure mean for Malaysians thinking about making the switch to EVs? Or even those looking to sell car online, upgrade, or scrap their ride? Let’s dive in.

Why LG Left – And Why It Matters

According to sources, uncertainties around policy implementation and raw material supply were key reasons LG backed out of the massive project. This exit could slow down EV production capacity across Southeast Asia — and yes, Malaysia could feel the pinch too.

If fewer EV batteries are produced regionally, EV prices may remain high, and Malaysia petrol prices could stay relevant for longer than expected. Not exactly music to the ears of drivers hoping to save money at the pump.

Now’s the Time to Sell Used Cars

As EV adoption slows temporarily, demand for fuel-efficient ICE vehicles may stay stable in Malaysia. If you’re sitting on an old ride, this could be your moment to sell used car while prices are still attractive. Especially if your vehicle is in good condition and has valid insurance kereta.

Need help figuring out your car’s value? Just download the Motorist App and get a free car valuation within minutes. Whether you're planning to sell car, renew insurance Malaysia, or monitor traffic camera Malaysia for summons, Motorist has you covered.

Scrap Car or Upgrade? We’ve Got Options

If your car is on its last legs, you might be thinking of scrapping it. Through the Motorist app, you can compare quotes and get assistance from A to Z. From scrap car services to transfer of ownership — it’s all just a tap away.

And if you’re ready for something new but not quite ready to go full electric yet, consider something fuel-efficient to cope with uncertain petrol prices.

Final Thoughts – The EV Race Just Got Real

LG's withdrawal is a wake-up call. For Malaysia to stay competitive, local and regional players need to up their game in infrastructure and policy clarity. But in the meantime, you don’t have to wait for the dust to settle.

Whether you’re planning to sell car Malaysia, renew insurance kereta, or just want to know what’s happening at the traffic camera Malaysia near your office – the Motorist Malaysia App is the ultimate companion.

Read More: Driving in Malaysia as a Foreigner? Here's What’s New in 2025

Download the Motorist App now. Designed by drivers for drivers, this all-in-one app lets you receive the latest traffic updates, gives you access to live traffic cameras, and helps you manage vehicle related matters.