Hyundai Motor, LG Energy Solution Launch Indonesia’s First EV Battery Plant

Hyundai Motor Group and LG Energy Solution have launched Indonesia’s inaugural electric vehicle battery cell production facility, capable of producing 10 Gigawatt hours (GWh) annually. This plant is a cornerstone of Hyundai Motor and LG Energy Solution’s pledge to invest up to $9.8 billion in Southeast Asia’s largest economy, aimed at building a robust EV supply chain. The Indonesian government highlighted the nation’s abundant reserves of nickel and copper as key advantages driving this initiative.

“Mineral resources of this nation, such as iron and nickel, are important components in batteries that will mobilize millions of EVs globally,” Hyundai Motor executive chairman Euisun Chung said at the factory’s opening ceremony. Integrated with Hyundai’s automotive factory, the plant will commence production of 50,000 units per year of the Kona Electric SUV, utilizing batteries manufactured in Indonesia.

Hyundai and LG Energy Solution are gearing up to begin the second phase of development for their battery plant, with plans to invest $2 billion to increase capacity by 20 GWh. Their initial investment of $1.1 billion in the West Java province battery cell plant, announced in 2021, provides enough annual capacity to supply batteries for over 150,000 battery-powered electric vehicles.

President Joko “Jokowi” Widodo emphasized that the plant would solidify Indonesia’s pivotal role in the global EV supply chain by establishing a domestic processing industry. “This is the first and largest EV battery cell plant in Southeast Asia, and I am sure we will be able to win this competition with other countries because the nickel, bauxite and copper are here”, Jokowi said at the same event. In 2020, Indonesia, the leading global producer of nickel, implemented a ban on raw nickel exports to promote local investment in metal processing.