Historic Milestone for Electric Vehicle Industry
South Korean giants Hyundai Motor and LG Energy Solutions have inaugurated the first-ever battery manufacturing facility in Indonesia, marking a significant milestone in the electric vehicle (EV) sector. Valued at $1.1 billion, the factory is located in Karawang, near Jakarta, and is set to bolster Indonesia’s position as a key player in the global EV market.
Boosting Production with State-of-the-Art Facility
The newly opened plant boasts a production capacity of 10 GWh per hour, aligning with Indonesia’s abundant natural resources, particularly nickel, which is essential for battery production. Construction of the facility commenced in 2021, underscoring the rapid development and strategic importance of this project.
“We have a lot of natural resources. So far, we have exported them as raw materials. Thanks to the battery factory, we will become an important global player in the electric vehicle industry,” stated President Joko Widodo during the opening ceremony.
Future Investments and Expansion Plans
Furthering their commitment, Hyundai and LG Energy Solutions are investing an additional $2 billion in a second production line, expected to have a capacity of 20 GWh per year. This expansion is part of a broader strategy to invest a total of $9.8 billion in Indonesia’s EV infrastructure, including Hyundai’s existing electric vehicle manufacturing plant, which has a capacity of 250,000 units per year. This initiative is set to significantly enhance the nation’s role in the EV supply chain and support global sustainability goals.
