Tesla battery supplier to build USD 1.2 billion EV battery plant in Indonesia

Sanjay · May 27, 2021 01:12 PM

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State-owned Indonesia Battery Corporation (IBC) and a consortium led by South Korea's LG Group (including LG Chem which supplies batteries to Shanghai-assembled Tesla Model 3s), will build a new electric vehicle (EV) battery plant in the country worth USD 1.2 billion, says Indonesia's investment minister, Bahlil Lahadalia.

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The Hyundai Kona Electric

With a capacity of 10 gigawatt hours (GWh) - 10 gigawatts equates to 10 billion watts of electric power - the plant will be built in the Kota Deltamas industrial area in Bekasi.

Batteries built in this plant will be used in Hyundai EVs, and Hyundai is building their first Indonesian factory nearby too.

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Also read: Hyundai Kona Electric to be assembled in Indonesia by 2023?

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Nikkei Asia reports that this 2.5-acre battery facility will employ 1,000 workers, and is part of a bigger USD 9.8 billion EV deal that LG and Indonesia inked last year. 

While Lahadalia stopped short of a definite timeline, he mentioned that the factory will be built "in the near future".

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Besides LG Chem, the South Korean conglomerate includes LG Energy Solution, LG International, as well as South Korean steelmaker POSCO and Chinese cobalt company, Huayou Holdings.

Also read: Indonesia leads SEA in EV adoption, research by Nissan suggests

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Meanwhile, IBC is made up of four Indonesian state-owned companies: mining holding company Mind ID and their nickel producer subsidiary Aneka Tambang, plus Pertamina and Perusahaan Listrik Negara, which deals in oil and gas and electricity respectively.

Also read: We have Petronas, Indonesia now has a gov-owned EV battery company

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Toyota is investing USD 2 billion into Indonesia too

This is just one of the few developments Indonesia is seeing in terms of EVs.

Recall that battery giant CATL is planning to invest USD 5 billion in the archipelago, Tesla looks to capitalise on the country's large nickel reserves, and don't forget the government too has announced rather forward-thinking policies to drive EV adoption.

Also read: While Malaysia dithers, Thailand and Indonesia have overtaken Malaysia in EV race

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Sanjay

Writer

With humble beginnings collecting diecast models and spending hours virtually tuning dream cars on the computer, his love of cars has delightfully transformed into a career. Sanjay enjoys how the same passion for cars transcends boundaries and brings people together.

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