Hyundai Motor Group today announced that it will partner with LG Energy Solution to build an electric vehicle battery plant in Indonesia. This is how the automaker seeks to secure a stable supply of batteries in the face of growing demand for electric vehicles.
The two South Korean companies have signed a memorandum of understanding with the Indonesian government to establish a joint venture for the production of battery cells.
Under the agreement, Hyundai and LG Energy are investing a total of $ 1.1 billion to build a battery plant in Karawang, east of Jakarta. The companies will participate in the joint venture in equal shares. The Indonesian government agreed to offer incentives to support the plant. After the commissioning of the plant, which will be located on a land plot with an area of 330,000 m2will be able to annually produce lithium-ion battery cells with a total capacity of 10 GWh, which is enough for more than 150,000 batteries for electric vehicles.
The source recalls that Hyundai, together with its subsidiary Kia, is the fifth largest automaker in the world, and Indonesia is one of the world’s largest producers of nickel, a key material for electric vehicle batteries.
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