Hyundai and LG investing RM 4.6 billion to build EV battery plant in Indonesia
Jason · Jul 30, 2021 12:00 PM
Hyundai Motor Group (HMG) and LG Energy Solution Ltd. (LG) announced that they have signed a Memorandum of Understanding (MoU) with the government of Indonesia to establish a joint venture (JV) in Indonesia to manufacture battery cells for BEVs.
This is part of Hyundai's plans to secure a stable supply of battery cells for its battery electric vehicles (BEVs).
Under the MoU, HMG and LG Energy Solution will invest a total of USD 1.1 billion (RM 4.6 billion) into the JV to build a battery cell plant in Karawang, Indonesia. The new factory in Karawang will be built on a 330,000-square-meter parcel of land.
Plant construction is scheduled to begin in the fourth quarter of 2021 and will be completed by the first half of 2023. Mass production of battery cells in the new facility is expected to commence in the first half of 2024.
When fully operational, the facility is expected to produce a total of 10 GWh worth of NCMA (nickel, cobalt, manganese, aluminium) lithium-ion battery cells every year, enough for more than 150,000 BEVs.
Battery cells produced by the plant in Karawang will be used in Hyundai Motor and Kia’s EV models built upon the Group’s dedicated BEV platform - Electric-Global Modular Platform (E-GMP).
With this battery cell manufacturing venture, HMG is building its roadmap to become a global EV powerhouse. By 2025, the HMG aims to expand its BEV lineup to more than 23 models and sell 1 million BEVs annually in global markets.
Jason's foremost passion is all things automotive, where he spent his formative working years as a Product Planner and Trainer. An Advanced Driving Instructor by training and an all-round enthusiast, Jason loves going into intricate details about driving dynamics. Will drive anything with 4 wheels and a steering.