South Korea's LGES, Hyundai Motor start work on Indonesian EV battery plant


FILE PHOTO: Hyundai logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. REUTERS/Wolfgang Rattay

JAKARTA (Reuters) - South Korea's LG Energy Solution (LGES) and Hyundai Motor Group have started construction on a $1.1 billion plant to make batteries for electric vehicles (EVs) in Indonesia, amid a push by the Southeast Asian nation to tap its rich nickel reserves.

In a video broadcast on Wednesday, Indonesian President Joko Widodo said the plant was the first EV battery facility in Southeast Asia and signalled the government's commitment to use its nickel resources to develop downstream industries.

"Indonesia has the world's biggest nickel reserves and with this potential, I believe in the next three to four years, with good management, Indonesia will be the main producer of nickel-based products, such as batteries," Jokowi, as the president is widely known, said at a ground-breaking ceremony.

The battery plant in the Indonesian province of West Java is part of a $9.8 billion investment plan https://www.reuters.com/world/asia-pacific/indonesia-says-98-bln-ev-battery-mou-agreed-with-lg-energy-solution-2020-12-30 for LGES, according to Indonesia's Investment Minister Bahlil Lahadalia, spanning the nickel and battery supply chain.

Jong-hyun Kim, the chief executive of LGES, which is wholly owned by LG Chem Ltd, said in a virtual address batteries will be produced using the company's latest technology and installed in various Hyundai Motor and Kia Motors Corp EVs.

Plant construction will be completed by the first half of 2023, a joint statement from Hyundai Motor Group and LGES said, adding that 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 annually produce 10 gigawatt hours (GWh) of NCMA (nickel-cobalt-manganese-aluminum) lithium-ion battery cells to power more than 150,000 EVs.

In addition, the facility will be ready to increase its production capacity up to 30 GWh to meet future growth, the statement said.

Hyundai Motor Group and LGES expect to develop in Indonesia a battery industry, as well as assembly plants for EVs and recharging infrastructure.

"Through the development of these industries, an EV ecosystem will be successfully developed in Indonesia, and furthermore I am confident Indonesia will play a key role as the hub of Southeast Asia's EVs market," Hyundai Motor Chairman Euisun Chung said.

(Reporting by Bernadette Christina Munthe in Jakarta and additional reporting by Heekyong Yang in Seoul; Writing by Fransiska Nangoy; Editing by Ed Davies)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

   

Next In Tech News

Software robots are gaining ground in white-collar office world
Australian police seek to protect 10,000 customers after Optus hack
Bitcoin could be as�bad for�the planet as�beef
Mom used phone app to track carjacker accused of pointing gun at teen daughter, US feds say
Google shutting down cloud gaming service Stadia
London coroner to review Instagram and Pinterest role in British teen’s suicide
Spotify is stepping up efforts to drive hateful content from its platform
Why four-day workweeks may be better for your career and health
Amazon, major publishers win dismissal of antitrust lawsuits over book pricing
NASA, SpaceX to study ways to boost orbit of Hubble telescope

Others Also Read