Hyundai and LG Energy to set up $1.1 bn EV battery plant in Indonesia

Hyundai Self-driven Fuel Cell Electric Vehicle

Korea’s Hyundai Motor and LG Energy Solution would set up a joint venture (JV) in Indonesia to establish a battery cell plant for electric vehicles (EV), investing $1.1 billion with each owning half the business.

The JV will help Hyundai Motor and its sister company Kia secure a stable supply of EV batteries at a competitive price for their battery electric vehicles.

Construction of the plant will start in the fourth quarter of 2021 and will be completed by the first half of 2023, the companies said.

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.