Hyundai & LG Open Indonesia's First EV Battery Plant
Indonesia, renowned for its vast nickel reserves, has inaugurated Southeast Asia's first EV battery manufacturing plant in Karawang, West Java. HLI Green Power, a joint venture between Indonesia Battery Corporation, Hyundai Motor and LG Energy Solution, owns this state-of-the-art facility.
Aiming for Global Leadership
Indonesia's rich nickel, bauxite and copper reserves, combined with its integrated smelter and precursor industries, position the country to lead the EV market.
The initial US$1bn investment in the plant will produce 10 GWh of battery cells annually, enough to power 150,000 EVs. Plans are underway to expand this capacity to 20 GWh in the future.
A Strategic Collaboration
The launch marks a significant milestone in the partnership between Hyundai Motor Group and LG Energy Solution. Both companies are committed to investing up to US$9.8bn to develop a comprehensive EV supply chain in Indonesia, leveraging the country's rich resources of nickel and copper.
"Mineral resources of this nation, such as iron and nickel, are important components in batteries that will mobilise millions of EVs globally," said Hyundai Motor Group Executive Chair Euisun Chung at the opening ceremony.
Integrated Production and Future Expansion
The battery plant integrates with Hyundai's auto factory, which plans to produce 50,000 units of the Kona Electric SUV per year using Indonesian-made batteries. Hyundai and LG Energy Solution are preparing for the second phase of the battery plant, which involves an additional US$2bn investment to increase capacity by another 20 GWh.
Future Cooperation
Indonesia's Investment Minister, Bahlil Lahadalia and South Korea's Minister for Trade, Cheong Inkyo, met to discuss future cooperation in EVs, petrochemicals and clean energy technologies, including carbon dioxide capture and storage.
The new plant is a significant step forward in Indonesia's ambition to dominate the EV market and contribute to a more sustainable future.
Strengthening Indonesia's Position in the EV Market
Since banning the export of raw nickel in 2020, Indonesia has been encouraging investment in local processing.
At the ceremony, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, highlighted Indonesia's readiness to become a pivotal player in the global supply chain for EVs. He noted that this initiative would reduce carbon emissions and improve air quality, enhancing the quality of life for Indonesians.
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