[Photo by Yonhap]
Hyundai Motor Group and LG Energy Solution Ltd. has begun construction of $1.1 billion first joint-venture electric vehicle battery cell production plant in Karawang industrial park in Indonesia that would serve as the base for EV inroads in Southeast Asia.
Hyundai Motor and LG Energy Solution announced Wednesday that they held a virtual ground-breaking ceremony for the battery cell factory in Indonesia Karawang Industrial City, near Indonesian capital of Jakarta.
Korea’s top automaking group and battery maker inked a memorandum of understanding (MOU) with the Indonesian government in July to form a 50-50 joint venture to produce EV battery cells in the country. They agreed to invest $1.1 billion in the JV.
Plant construction will begin in the fourth quarter on a 330,000-square-meter area and be completed by the first half of 2023. Mass production is expected to start in the first half of 2024.
The plant will be capable of producing 10 gigawatt-hour (GWh) worth nickel, cobalt, manganese and aluminum (NCMA) lithium-ion battery cells per year, enough to power 150,000 units of EVs. The capacity can be stretched to up to 30 GWh depending on the market demand, the companies said.
“Hyundai Motor Group is focusing its capabilities on becoming a global leader in the EV market, which is the key to securing future competitiveness. The plant is a part of these efforts,” said Chung Euisun, Chairman of Hyundai Motor Group. “Starting with this plant, an EV ecosystem will be successfully established in Indonesia with the development of various related industries. Furthermore, we expect Indonesia to play a key role in the ASEAN EV market.”
“Today marks a significant step in starting a new era of the EV battery industry in Indonesia, with the establishment of its first battery cell manufacturing plant in the country,” said Kim Jong-hyun, President and CEO of LG Energy Solution. “Through the joint venture partnership, together, we are now a step closer to establishing the world’s first EV comprehensive supply chain.”
By Choi Mira
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