By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > News > Hyundai and LG Energy open Indonesia’s first battery cell factory
News

Hyundai and LG Energy open Indonesia’s first battery cell factory

News Room
Last updated: 2024/07/03 at 1:32 AM
By News Room
Share
4 Min Read
SHARE

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Hyundai and LG Energy Solution have opened a $1.1bn battery cell plant in Indonesia as the south-east Asian country works to build an electric vehicle ecosystem.

The launch of the country’s first battery plant on Wednesday is part of Indonesia’s push to move up the global EV supply chain. Indonesia has the world’s largest reserves of nickel, a crucial component in EV batteries and steelmaking.

Jakarta has stepped up efforts in recent years to bring in investments for nickel processing and battery and car manufacturing. Chinese automaker BYD and Vietnam’s VinFast said this year that they would begin making EVs in Indonesia.

Hyundai and LG launched the factory in Karawang, a city east of the capital Jakarta. It is the first in Indonesia and will have an annual production capacity of 10 gigawatt hours.

“We have an abundance of natural resources but for decades we only exported them as raw materials with no added value,” Indonesian President Joko Widodo said at the launch. “Now with the construction of smelters and the EV battery cell factory, we will become an important global player in the EV global supply chain.”

Hyundai and LG will invest a total of Rp160tn ($9.8bn) in Indonesia’s EV ecosystem in stages, he added.

Investment minister Bahlil Lahadalia said the South Korean companies would begin constructing the second phase of the battery cell factory, which will have an annual production capacity of 20 gigawatt hours, with an investment of $2bn.

The battery cells from the Indonesian plant will be used in Hyundai and Kia’s EV models. Indonesian officials have also said about 90 per cent of the factory’s products will be exported to South Korea and India.

The two companies have a 50-50 stake in the project, which was first announced in 2021. Hyundai also has a car manufacturing plant in Indonesia, with a capacity to produce 250,000 units per year.

“Mineral resources in this country, such as iron and nickel, are key components for batteries that will mobilise millions of EVs all over the world,” said Chung Eui-sun, executive chair of Hyundai.  

Widodo’s ban on nickel ore exports in 2020 forced foreign companies to invest onshore. The bulk of that investment has come from Chinese companies into the nickel processing sector.

But Indonesia has been offering incentives such as tax breaks to woo nickel and EV-related investments from around the world. Hyundai said in 2021 that the Indonesian government had agreed “to offer various incentives and rewards to support the stable operation” of its battery cell plant.

Since Hyundai and LG Energy first announced they were going to open a battery cell plant in Indonesia, demand for EVs has slowed. Still, analysts said the country would benefit from the global transition to cleaner transportation.

China’s CATL, the world’s biggest EV battery manufacturer, has also started building a battery plant in the country, said Indonesian officials.

“Indonesia is at the very early stage of EV manufacturing and stands to benefit from incremental gains over the long term, regardless of whether EV moves in the fast or slow lane,” said Kai Wei Ang, Asean economist at BofA Securities.

Read the full article here

News Room July 3, 2024 July 3, 2024
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Crypto’s resilience faces new test amid Middle East tensions and new legislation

Watch full video on YouTube

Tesla Opened A Diner In LA — Here’s What It’s Like

Watch full video on YouTube

Meta’s Scale AI deal, Adobe earnings, Microsoft’s record high: Analyst weighs in

Watch full video on YouTube

Why Even High Earners Are Living Paycheck To Paycheck

Watch full video on YouTube

Empire State Realty Trust, Inc. (ESRT) Q2 2025 Earnings Call Transcript

Empire State Realty Trust, Inc. (NYSE:ESRT) Q2 2025 Earnings Conference Call July…

- Advertisement -
Ad imageAd image

You Might Also Like

News

Empire State Realty Trust, Inc. (ESRT) Q2 2025 Earnings Call Transcript

By News Room
News

Crown Castle Inc. 2025 Q2 – Results – Earnings Call Presentation (NYSE:CCI)

By News Room
News

Microsoft poaches top Google DeepMind staff in AI talent war

By News Room
News

White Brook Capital Partners Q2 2025 Commentary

By News Room
News

EU must strengthen Asian security ties despite US pressure, says Kaja Kallas

By News Room
News

US embassy in China warns exit bans risk straining bilateral relations

By News Room
News

Client Challenge

By News Room
News

Donald Trump’s escalating attacks on Federal Reserve unnerve investors

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?