Aju Business Daily

SEOUL -- The battery-making wing of South Korea's LG Group signed a broad business agreement with Indonesia on cooperation in batteries for electric vehicles. LG Energy Solution cautioned against expanded interpretation, saying it is just a non-binding memorandum of understanding on comprehensive cooperation.

The memorandum of understanding (MOU) was signed on December 18 in a ceremony attended by Trade, Industry and Energy Minister Sung Yun-mo, LG Energy Solution CEO Kim Jong-hyun, and Bahlil Lahadalia, chairman of Indonesia Investment Coordinating Board.

LG Energy Solution said it would make an official announcement later if details are finalized. The company has refused to confirm news reports that it has negotiated a package deal encompassing nickel mining, smelting and a battery production plant.

The ceremony at a Seoul hotel came on the sidelines of trade talks between Sung and his Indonesian counterpart Agus Suparmanto who signed the comprehensive economic partnership agreement (CEPA), which is equivalent to a free trade agreement but focuses on a broader scope of economic cooperation.

LG Energy Solution spun off from LG Chem made its official debut as a separate entity on December 1. The battery company runs battery plants in South Korea, Europe, China and North America and establishes a stable supply network of raw materials through companies in Australia, China and other countries.