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China’s Huayou replaces LG in Indonesia’s $7.7B EV battery project

After 5 years of negotiations, Indonesia drops LG and taps Huayou Cobalt to power its EV battery dreams.

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(Credit: Huayou Cobalt)

China’s Huayou Cobalt replaced LG Energy Solution in Indonesia’s $7.7 billion electric vehicle (EV) battery project. The shift underscores China’s growing influence in Southeast Asia’s EV supply chain.

Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, confirmed that Huayou would replace LG in the Grand Package, a plan to build a comprehensive EV battery ecosystem. The Grand Package, also called Project Titan, included plans to develop raw material mining, processing, and EV battery production in Indonesia.

“Conceptually, the development of the Grand Package has not changed. The infrastructure and production plan remain in accordance with the initial road map. LG is no longer involved and has been replaced by Huayou,” Bahlil said.

LG Energy Solution signed a memorandum of understanding with Jakarta in December 2020 but exited after prolonged talks.

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“Taking into account various factors, including market conditions and investment environment, we have agreed to formally withdraw from the Indonesia GP (Grand Package) project,” LGES stated.

Investment Minister Rosan Roeslani noted that the government removed LG on January 31 due to a “long negotiation process” spanning five years. The Investor Minister also mentioned that Indonesia considered the Chinese company because Huayou’s technological capabilities positioned it as a suitable replacement to advance the project.

“We want all of this to run well, quickly, but the negotiations have been going on for five years. The government decided to replace LG with Huayou since it expressed interest in the Titan project last year,” Rosan noted.

The transition highlights Indonesia’s determination to maintain momentum in its EV battery ambitions, resulting in deepening ties with China. Huayou’s leadership ensures Project Titan adheres to its original timeline, reinforcing Indonesia’s role in the global EV supply chain.

China’s expanding presence in the EV sector could reshape regional dynamics as Indonesia leverages its rich nickel resources to attract investments. The move also signals challenges for non-Chinese firms navigating Indonesia’s complex investment landscape.

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Tesla launches Full Self-Driving in a new region

Today, Tesla launched Full Self-Driving in Australia for purchase by car buyers for $10,100, according to Aussie automotive blog Man of Many, which tried out the suite earlier this week.

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Credit: Tesla

Tesla has launched its Full Self-Driving suite in a new region, marking a significant step in the company’s progress to expand its driver assistance suite on a global scale.

It is also the first time Tesla has launched FSD in a right-hand-drive market.

Today, Tesla launched Full Self-Driving in Australia for purchase by car buyers for $10,100, according to Aussie automotive blog Man of Many, which tried out the suite earlier this week.

Previously, Basic and Enhanced Autopilot suites were available, but the FSD capability now adds Traffic Light and Stop Sign Control, along with all the features of the previous two Autopilot suites.

It is the first time Tesla has launched the suite by name in a region outside of North America. In China, Tesla has “City Autopilot,” as it was not permitted to use the Full Self-Driving label for regulatory reasons.

However, Tesla still lists Full Self-Driving (Supervised) as available in the U.S., Canada, China, Mexico, and Puerto Rico.

The company teased the launch of the suite in Australia earlier this week, and it appeared to have been released to select media members in the region earlier this week:

Tesla FSD upcoming Australia release seemingly teased bv media

The rollout of Full Self-Driving in the Australian market will occur in stages, as Model 3 and Model Y vehicles with Hardware 4 will receive the first batch of FSD rollouts in the region.

TechAU also reported that “the initial deployment of FSDs in Australia will roll out to a select number of people outside the company, these people are being invited into Tesla’s Early Access Program.”

Additionally, the company reportedly said it is “very close” to unlocking FSD in customer cars:

Each new Tesla sold will also come with a 30-day free trial of the suite.

Australia is the sixth country to officially have Full Self-Driving available to them, following the United States, Canada, China, Mexico, and Puerto Rico.

Here’s the first look at the suite operating in Australia:

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Tesla AI6 chips will start sample production at surprising Samsung site

AI6 is expected to be used in Tesla’s expanding lineup of high-volume products, such as the Cybercab and Optimus.

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Credit: Tesla/YouTube

It appears that the initial sample production of Tesla’s next-generation AI6 chip would not start in Samsung’s United States-based facilities. 

AI6 is expected to be used in Tesla’s expanding lineup of high-volume products, such as the Cybercab and Optimus.

Early AI6 production

As noted in a ZDNet Korea report, the production of initial samples of Tesla’s AI6 chip is expected to start at Samsung Electronics’ domestic foundry and packing facilities in South Korea. Mass production for AI6 chips will follow at the tech giant’s Texas-based foundry in Taylor, which is expected to start operations in 2025. Investment in mass production facilities for the Taylor plant are expected to start this year, the publication noted.

Samsung has reportedly finalized the process design kit for its second-generation 2nm technology. This node offers a 12% performance improvement, 25% lower power consumption, and an 8% reduction in chip area compared to its previous-generation counterparts. 

Tesla’s AI6 deal

As per previous reports, Tesla has signed a $16.5 billion contract with Samsung for the production of its AI6 chips. In a post on social media platform X, Musk clarified that $16.5 billion is actually just the bare minimum. Considering that the demand for AI6 chips will be substantial due to the ramp of products such as Optimus and the Cybercab, it would not be farfetched if the deal becomes notably larger in the future.

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Musk has shared his excitement for Samsung’s production of AI6 chips, with the CEO stating on X that he would “walk the line personally” in the facility to “accelerate the pace of progress.” In a follow-up comment, the Tesla CEO stated that Samsung is fully aware of what a real partnership with Tesla will be like. “I had a video call with the chairman and senior leadership of Samsung to go over what a real partnership would be like. Use the strengths of both companies to achieve a great outcome,” Musk wrote in his post. 

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Elon Musk’s Boring Company begins Tesla FSD testing in Las Vegas tunnels

The update was shared by Las Vegas Convention and Visitors Authority (LVCVA) CEO Steve Hill.

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Credit: The Boring Company/X

The Boring Company has started testing Tesla’s Full Self-Driving (Supervised) system in its Las Vegas tunnels. 

The update was shared by Las Vegas Convention and Visitors Authority (LVCVA) CEO Steve Hill in a comment to Fortune.

Controlled FSD testing

In his comments, Hill noted that Tesla’s FSD tests in the Boring Company’s underground tunnels in Las Vegas have been going on for months. However, the full-self driving Teslas have reportedly not been carrying passengers during the tests. Interestingly enough, Hill noted that the FSD-driven vehicles have not had any incidents in the Boring Company tunnels yet, though safety drivers have been required to intervene “periodically.”

Hill further noted that the self-driving Teslas have found some spots that seem quite difficult in the underground tunnels system. The LVCVA CEO added that the rock walls of the Boring Company tunnels and their colorful lighting have created some “interesting but odd lighting” for FSD. That being said, Hill noted that the FSD tests are ongoing, though the LVCVA will likely be a consultant before the self-driving vehicles’ safety drivers are removed. 

The executive, however, noted that it will only be a matter of time before the Teslas in Las Vegas’ Boring Company tunnels are operating without a driver. “Sooner or later, this is going to be autonomous,” Hill said.

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Vegas Loop updates

The Boring Company’s underground transit system has been operating beneath the Las Vegas Convention Center for about four years. While the network is slated for expansion across more of the city, it currently connects the convention grounds with a handful of nearby hotels. Updates from the Boring Company’s official social media account on X suggests that tunneling is underway across other stops in Las Vegas.

As per the Boring Company on its official website, the greater Vegas Loop, when completed, will have 104 stations across 68 miles of tunnels. This should allow the underground system to serve an estimated 90,000 passengers per hour. It will also be able to connect key locations across the city, such as Harry Reid International Airport, Allegiant Stadium, and downtown.

While the Vegas Loop is nowhere near complete, Hill noted that the system is already well appreciated by residents and visitors. As per the LVCVA CEO, the underground transport system is the “highest rated feature we have” at the Convention Center.  “People love it,” he said, adding that the only reason the tunnels are not coming faster is due to holdups with permits. “We’re holding them back. They’re not holding us back,” he stated.

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