Hyundai Motor and LG Energy Solution recently completed Indonesia’s first battery cell production facility for electric vehicles in Karawang. The plant has an annual capacity of 10 GWh of battery cells.
The agreement was signed in 2021 where they announced an investment of USD 1.1 billion. Hyundai Motor and LG Energy Solution agreed to have a 50 percent ownership stake in the JV.
The Indonesian government provided various incentives and rewards to support the stable operation of the plant. With the completion of this plant, Hyundai and LG Energy Solution are further strengthening a strategic partnership that started more than a decade ago.
Indonesia is one of the world’s largest producers of nickel, a key raw material for EV batteries. The Indonesian government has been aggressively fostering an EV industry ecosystem and infrastructure so that the country can play a pivotal role in the global EV race.
Karawang is close to the current Indonesian capital of Jakarta. With well-established transportation networks, including airports, ports, and highways, Karawang has attracted development of several large-scale industrial complexes across several industries, such as automotive, electronics, logistics, construction materials and others.