Hyundai and LG Energy Solution Launch Indonesia’s First EV Battery Cell Plant

Inside Indonesia’s electric vehicle (EV) industry, Hyundai and LG Energy Solution have officially opened the country’s first battery cell production plant. The $1.1 billion facility in Karawang, West Java, started operations on Wednesday, scoring an important step in Indonesia’s process to become a global hub for EV production.

The joint venture between the two companies, known as HLI Green Power, will see the plant deliver an annual production capacity of 10 GWh. This amount of energy is sufficient to power over 150,000 EVs annually. This plant will also align with Indonesia’s broader strategy to leverage its vast nickel reserves, which account for 50% of global production to attract investment in the EV sector.

The plant’s opening also arrives at a critical moment for Indonesia’s automotive landscape. While EVs currently account for only about 2% of the country’s auto sales, this figure is expected to reach double digits by 2030. Furthermore, Indonesia has set a goal of producing 600,000 EVs annually by 2026 as part of its plan to achieve carbon neutrality.

Indonesian President Joko Widodo expressed the significance of the plant stating, “We have an abundance of natural resources but for decades we only exported them as raw materials with no added value. 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.”

Notably, the plant will initially supply cells for Hyundai and Kia EV models with production starting with the new Kona Electric. As a result, Hyundai aims to position its Kona Electric model as “Indonesia’s representative electric vehicle,” providing long-range and fast-charging capabilities at an affordable price point.

With the inauguration of this plant along with Hyundai’s recent unveiling of its affordable INSTER EV for the European market, the developments that Hyundai has done demonstrate the company’s dedication to expanding its EV portfolio globally. As the first of its kind in Indonesia, this battery cell plant represents a significant step towards creating a comprehensive local EV ecosystem while boosting Indonesia’s economy and the transition towards electric mobility.

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