Hyundai Motor Group has officially launched the new manufacturing plant located in Kota Deltamas, Cikarang, Indonesia. The plant will start production of Indonesia’s first locally assembled (CKD) electric vehicle (EV).

In case you missed it, the EV that will be produced at the Cikarang plant will be the 2022 Ioniq 5. The plant will be the first in the world to produce the Ioniq 5 outside of Korea. Before the launch, the SUV was only produced at Hyundai Motor’s Ulsan plant.

The start of local production of the 2022 Ioniq 5 is in line with Indonesian President Joko Widodo’s, also known as Jokowi, goal of developing a full EV supply chain utilising the country’s mineral source.

Jokowi, who was present at the plant’s inauguration, hopes to make Indonesia an important player in the global supply chain of electric cars.

Also read: Hyundai Indonesia starting world's first CKD production of Ioniq 5, launching in March 2022

Indonesia is a major nickel ore producer, an important material for EV batteries. On top of that, the country also produces cobalt and has large deposits of bauxite and copper ores, all of which are important components when it comes to producing an EV.

Jokowi added that he hopes all EVs produced in Indonesia by 2024 will use locally made batteries and other key components.

Also read: Hyundai confirms first CKD electric vehicle in Indonesia by March 2022 – Ioniq 5?

Back to the plant, Hyundai in 2019 said that it would invest USD 1.55 billion (~ RM 6.5 billion) up to 2030 on the Cikarang plant. The plant has a starting capacity of 150,000 vehicles per year and can be expanded to 250,000 annually.

Other than the Ioniq 5, the plant also currently produces the Hyundai Creta.

Also read: From RM 199.9k, Ioniq 5 SUV launched in Malaysia: up to 430km range, V2L powerbank function, 3 variants

Hyundai stated that the new plant would be linked to the new Hyundai-LG joint venture battery plant located in Karawang, Indonesia which is scheduled to open in 2024.