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04/07/2024 - 16:36

Indonesia launches first EV battery plant in Southeast Asia

Indonesia launched its first electric vehicle (EV) battery plant on July 3, which is also the first of its kind in Southeast Asia.

Indonesian President Joko Widodo (right) speaks with Hyundai Motor Group Executive Chairman Chung Eui-sun (center) during an inspection of the battery and electric vehicle manufacturing plant by PT Hyundai LG Indonesia-Green Power in Karawang, West Java. (Photo: AFP/Indonesian Presidential Palace)

The plant, located in Karawang city, West Java, belongs to PT HLI Green Power, a joint venture between Indonesia’s Battery Corporation and Korean manufacturers Hyundai Motor Group and LG Energy Solution (LGES).

With an investment of 1 billion USD, the plant can produce up to 10 Gigawatt hours (GWh) of battery cells every year to provide to 150,000 EVs.

PT HLI Green Power is expected to spend 2 billion USD to raise the plant's capacity to 20 GWh.

The plant is part of a 9.8 billion USD EV battery deal signed between Indonesia and LG in 2020.

Speaking at the inauguration ceremony, Indonesian President Joko Widodo emphasised that the opening of the factory marks a new chapter demonstrating Indonesia's desire to become a global partner in the EV supply chain.

Meanwhile, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan affirmed Indonesia's readiness to be a key player in the global EV supply chains.

Indonesia has the world's largest nickel reserves and the reserves of iron, copper, and bauxite which are important components of EV batteries./.