South Korean automaker Hyundai Motor Group and battery maker LG Energy Solution today (July 3) opened a new US$1.1 billion plant to produce battery cells for electric vehicles (EVs) in Indonesia.
The new facility, developed by HLI Green Power, a joint venture between Hyundai and LG, is the first in the country and is located in Karawang, West Java. It was first announced in 2021.
The new facility will span 320,000 m² in Karawang New Industry City and will be able to produce 10 GWh of battery cells per year, enough to power more than 150,000 electric vehicles. Hyundai and Kia EV models will use the cells produced at the plant.
HLI Green Power aims to create a comprehensive local EV ecosystem that includes sourcing raw materials, manufacturing batteries and vehicles, supporting charging networks, and recycling batteries. Indonesia has an abundance of natural resources needed for EV production, especially nickel.
Indonesian President Joko Widodo said: “We have abundant natural resources, but for decades we only exported them as raw materials without adding value. Now with the construction of smelters and the EV battery cell factory, we are becoming a major global player in the global EV supply chain.”
Chung Eui-sun, executive chairman of Hyundai, added: “Mineral resources in this country, such as iron and nickel, are key components for batteries that will power millions of electric vehicles around the world.”
Hyundai’s investment in Indonesia complements that of its recent $2 Billion Electric Car Factory in Georgia, $2.4 billion EV assembly plant in Chennai And $128M EV Battery Factory in Navarra, Spain.
“Hyundai and LG open first electric vehicle battery production plant in Indonesia” was originally created and published by Investment monitora brand of GlobalData.
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