Sumary of Hyundai and LG start building $1.1bn EV battery plant in Indonesia:
- JAKARTA — South Korea’s Hyundai Motor Group and LG Energy Solution on Wednesday kicked off the construction of a $1.1 billion electric vehicle battery plant in Indonesia, which President Joko “Jokowi” Widodo hailed as marking the country’s shift away from resources toward technology.
- LG Energy CEO Kim Jong-hyun said the factory will churn out “next generation” lithium-ion battery cells using the company’s new NCMA technology, with production expected to start in 2024 and output to be exclusively used by Hyundai and its affiliate, Kia.
- Indonesia’s investment minister and the head of the Investment Coordinating Board, Bahlil Lahadalia, said the battery plant is part of a $9.8 billion plan signed with LG Energy last December to develop an integrated battery industry in Southeast Asia’s largest economy through partnerships with several state-owned enterprises.
- The government has rolled out the red carpet for Hyundai and LG to develop the battery plant, helping the South Korean companies bypass notorious bureaucratic hurdles that have kept many investors away.