On July 3rd, 2024, Hyundai Motor Group and LG Energy Solution (LGES) of South Korea opened Indonesia’s first battery cell production plant for electric vehicles. This facility has an annual capacity of 10 Gigawatt hours (GWh) of battery cells. Hyundai and LGES have invested up to USD 9.8 billion (IDR 149 trillion) in Indonesia, Southeast Asia’s largest economy, aiming to develop a supply chain for electric vehicles that utilizes the country’s nickel and copper resources.
At the factory’s opening ceremony, Hyundai Motor Group Executive Chair Euisun Chung noted that Indonesia’s mineral resources, including iron and nickel, are vital for the production of batteries for electric vehicles globally. The plant is connected to Hyundai’s auto factory, which plans to manufacture 50,000 units per year of the Kona Electric SUV, using the batteries made at the new facility.
Hyundai and LGES also plan to begin the second phase of the battery plant, which includes an investment of USD 2 billion or 30.5 trillion to increase the plant’s capacity by 20 GWh. Originally announced in 2021, the companies invested USD 1.1 billion in the plant in West Java province. The plant has the capacity to produce batteries that can power more than 150,000 electric vehicles annually.
President Joko Widodo remarked that the plant will strengthen Indonesia’s position in the global supply chain for electric vehicles. He pointed out that Indonesia has an advantage because it has abundant supplies of nickel, bauxite, and copper.
(Source: Channel News Asia)
