The Strategist

Hyundai and LG open first battery plant in Indonesia

07/05/2024 - 03:21

According to a joint press statement, Hyundai Motor Co. of South Korea and LG Energy Solutions have opened the first $1.1 billion electric vehicle battery plant in Indonesia.

The plant's construction at Karawang, close to Jakarta's capital, began in 2021. The plant will produce a total of 10 GWh of batteries annually. The majority of the nickel used in batteries is produced in Indonesia.

Indonesian President Joko Widodo stated at the plant's opening ceremony, "We have a lot of natural resources, but for decades we have been exporting them as raw materials without adding value… We will now play a significant role in the global electric vehicle market with the opening of the battery facility and the construction of steel mills."

The firms will build the $2 billion plant's second line, with an annual capacity of 20 GWh. Hyundai and LG intend to invest a total of $9.8 billion to build Indonesia's infrastructure for electric vehicles. Hyundai already has an assembly facility for electric cars in the nation that can build up to 250,000 vehicles annually.