Hyundai Energy Indonesia (HEI), a subsidiary of Hyundai Motor Group, is constructing its first EV battery system plant in Indonesia. Located in Cikarang, West Java, and to be built in collaboration between Hyundai Motor Manufacturing Indonesia and Hyundai Mobis, investment into the plant is approximately INR 900 billion (~RM 279 million). Mass production is set to begin in the first half of 2024.

The primary goal of the battery system plant is to ensure a stable supply of batteries for Hyundai's electric vehicle models and strengthen the production supply chain.

Hyundai Energy Indonesia will oversee all production activities at the facility, while Hyundai Mobis will provide support for the EV power electric system. Spanning 32,188 square meters, the factory will produce battery systems for Indonesian-made EV models, which are expected to enter the Southeast Asian market in 2024. The facility will optimise two types of battery cells, standard capacity, and large capacity for longer mileage.

Hyundai is also involved in a joint venture with LG Energy Solution to build a seperate battery cell factory in Karawang, West Java.

Also read: Indonesia starts work on SEA’s first EV battery manufacturing plant – cuts reliance on commodity exports

By strategically locating the battery system plant near other Hyundai facilities, including the assembly plant and the battery cell plant, operational efficiency and supply chain management will be improved. These three Hyundai facilities together will position Indonesia as an EV hub in Southeast Asia.

Hyundai aims to fulfill the local content requirement for its EVs in Indonesia and contribute to the local economy. The company has focused on domestic EV production, such as the CKD Ioniq 5 at its Cikarang facility. With the completion of the battery system and cell production, Hyundai will establish a complete EV value chain in Indonesia.

These initiatives align with the Indonesian government's focus on the EV industry, in which it plans to keep the 0% sales tax for CKD BEVs.

Hyundai Motors Indonesia, the official sales subsidiary and distributor for Hyundai passenger cars, has been actively promoting the EV ecosystem in Indonesia. They have established a charging station network across the country and will continue expanding it to facilitate EV charging. 

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