TMTPOST -- South Korea’s LG Energy Solution (LGES) announced on Monday that it has officially pulled out of a major electric vehicle (EV) battery project in Indonesia, valued at 142 trillion rupiah ($8.45 billion). The decision comes after LGES and the Indonesian government initially signed an agreement in late 2020 for the "Indonesia Grand Package" project, which was set to involve extensive investments throughout the EV battery supply chain. "After considering various factors, including market conditions and the investment environment, we have agreed to formally withdraw from the Indonesia GP (Grand Package) project," LGES stated. Despite this withdrawal, the company emphasized that it would continue to explore other forms of collaboration with the Indonesian government, particularly through its joint venture, HLI Green Power. HLI Green Power, a partnership between LGES and Hyundai Motor Group, opened Indonesia's first battery cell production plant for EVs last year. The plant has an annual capacity of 10 gigawatt hours, with plans to expand during the second phase of investment.