Battery cells manufactured by the plant will be used in Hyundai Motor and Kia’s EV models
The new facility to begin mass production of battery cells in the first half of 2024. (Credit: Hyundai Motor Company)
Hyundai Motor Group and LG Energy Solution have partnered to invest $1.1bn to build a new battery cell manufacturing plant in Indonesia for electric vehicles.
The two companies have signed a memorandum of understanding (MoU) with the Indonesian government to set up a joint venture (JV) for the plant.
Hyundai Motor and LG Energy Solution will each own a 50% ownership stake in the JV.
Under the MoU, the government has agreed to provide various incentives for the stable operation of the battery cell plant to be located in Karawang, which is close to the Indonesian capital of Jakarta.
With construction planned to commence in the fourth quarter of 2021, the plant will be completed by the first half of 2023.
The new facility is expected to begin mass production of battery cells in the first half of 2024.
Hyundai Motor Group stated: “With this battery cell manufacturing venture, the Group and LG Energy Solution are further strengthening a strategic partnership that started more than a decade ago.”
To be located on a 330,000m2 of land, the battery cell plant in Karawang is said to be the most optimal location for Hyundai Motor Group and LG Energy Solution taking into various factors.
In addition, Indonesia is one of the world’s largest producers of nickel, a key raw material used in making EV batteries.
Once fully operational, the facility is expected to produce a total of 10GWh worth of NCMA lithium-ion battery cells annually, which is sufficient for more than 150,000 electric vehicles.
Battery cells produced by the plant are planned to be used in Hyundai Motor and Kia’s EV models.
The South Korean automotive manufacturer stated: “Cooperation with LG Energy Solution will also help Hyundai Mobis secure a stable supply of EV battery cells in upcoming years, as the global demand of EVs is expected to continue rising.
“Hyundai Mobis plans on accelerating its effort to expand the production of battery systems and to develop cutting-edge technologies to gain a sustainable competitive advantage in the global EV market.”