South Korea’s Hyundai Motor and LG Chem are considering establishing an electric vehicle (EV) battery cell manufacturing joint venture in Indonesia, Reuters reported.
The news comes as global automakers move to secure electric vehicle batteries in anticipation of a rise in EV sales due to government subsidies and quotas worldwide seeking to cut carbon emissions.
In recent years, battery maker LG Chem has set up separate ventures with both General Motors and Geely Automobile Holdings.
LG Group Chairman Koo Kwang-mo met Hyundai Motor Group Executive Vice Chairman Euisun Chung on Monday to discuss cooperation in EV batteries, including future battery technology.
Both LG Chem and Hyundai Motor Group confirmed the meeting but said nothing has been decided concerning a potential venture.
LG Group’s biggest companies include LG Chem and LG Electronics Inc. Hyundai Motor Group includes automakers Hyundai Motor and Kia Motors as well as auto parts maker Hyundai Mobis.
A battery cell joint venture would be the first for Hyundai, widely viewed as a relative latecomer to the EV market. The automaker is considering starting production of EVs tailored to Southeast Asia at a new plant in Indonesia, the region’s second-largest car production hub after Thailand.
Indonesia is promoting the domestic development of EV and battery production to create a downstream industry for the country’s rich supply of lithium battery ingredient, nickel laterite ore.