Hyundai Motor Group and LG Energy Solution have begun construction of an EV battery cell plant, following a virtual groundbreaking ceremony at the planned site in Karawang New Industry City, near Jakarta, Indonesia.
An MoU was signed between the pair and the Indonesian government in July this year to establish a joint venture to manufacture battery cells for BEVs. Subsequently, both parties announced a combined US$1.1bn investment would be made into the JV, with each company to own a 50% stake.
Built on a 330,000m2 site, the plant is expected to be completed in the first half of 2023, with mass production scheduled to start in 2024. The pair estimate that the plant will be able to produce 10GWh worth of NCMA lithium-ion battery cells annually, enough to power over 150,000 BEVs. The site will be future-proofed to enable a production capacity of up to 30GWh when demand grows.
The battery cells produced at the site will be utilized in both Hyundai and Kia vehicles that have been built on the Group’s BEV platform, called the Electric-Global Modular Platform (E-GMP). Both parties aim to secure a steady supply of EV battery cells as global demand continues to rise. Hyundai will contribute expertise in the areas of vehicle and compartment manufacturing to increase production efficiency.
“Hyundai Motor Group is focusing its capabilities on becoming a global leader in the EV market, which is the key to securing future competitiveness. The plant is a part of these efforts,” commented Euisun Chung, chairman, Hyundai Motor Group. “Starting with this plant, an EV ecosystem will be successfully established in Indonesia with the development of various related industries. Furthermore, we expect Indonesia to play a key role in the ASEAN EV market.”
“Today marks a significant step in starting a new era of the EV battery industry in Indonesia, with the establishment of its first battery cell manufacturing plant in the country,” explained Jong-hyun Kim, president and CEO, LG Energy Solution. “Through the joint venture partnership, together, we are now a step closer to establishing the world’s first EV comprehensive supply chain. LG Energy Solution will do its utmost to foster the joint battery cell manufacturing facility into becoming a key base to take on the global EV market.”