In a major move for Indonesia’s electric vehicle industry, Hyundai and LG Energy Solution launched the country’s first battery cell production plant on Wednesday. The facility boasts an annual capacity of 10 Gigawatt hours (GWh) of battery cells.
This plant is part of a larger commitment by Hyundai and LGES to invest up to $9.8 billion in Indonesia, aiming to develop a strong EV supply chain within Southeast Asia’s biggest economy. Indonesia’s rich nickel and copper resources were a key factor in this decision.
“Indonesia’s mineral resources, like nickel, are crucial components for batteries that will power millions of EVs worldwide,” said Hyundai Motor Group Executive Chair Euisun Chung at the opening ceremony.
The battery plant is strategically located next to Hyundai’s existing car factory. This allows Hyundai to begin production of 50,000 Kona Electric SUVs annually, all equipped with batteries made in Indonesia.
Looking ahead, Hyundai and LGES are already planning the second phase of the battery plant. This expansion will involve a $2 billion investment to increase the plant’s capacity by an additional 20 GWh.
For reference, the total investment announced in 2021 for the initial phase of the plant located in West Java province was $1.1 billion. With its current capacity, the plant can produce enough batteries to power over 150,000 electric vehicles per year.
[source: Reuters]
