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Hyundai, LG begin construction of a joint battery plant in Indonesia

Hyundai, LG begin construction of a joint battery plant in Indonesia
Hyundai, LG begin construction of a joint battery plant in Indonesia

Hyundai Motor Group and LG Energy Solution have reportedly started the construction of a 10 gigawatt-hour battery plant in Indonesia on Wednesday (September 15). If sources are to be believed, the two South Korean giants have formed a $1.1 billion joint venture for the project, where each company owns a 50% stake.      

This collaborative move apparently comes amid the increasing inclination of the global automakers to form alliances with battery manufacturers. Through such collaborations, they intend to stabilize the supply of battery cells which are the backbone of EV models.

Sources have reported that this joint factory will be constructed on a 300,000-meter site in Karawang, near Jakarta and is expected to be completed by the first half of 2023. This new facility will manufacture NCMA (nickel, cobalt, manganese, and aluminum) lithium-ion batteries from the first half of 2024, enough to power over 150,000 electric vehicles. It will also consider expanding the plant’s capacity to as much as 30 gigawatt-hours per year, subject to the future demand.

The battery cells produced in this facility will reportedly be used in the EV models of Hyundai Motor and Kia that will be built upon E-GMP, the automotive major’s dedicated EV platform.   

Speaking on the initiative, Chung Euisun, Chairman of Hyundai Motor Group stated that the opening of this facility will successfully establish an EV ecosystem in Indonesia. The company also expects Indonesia to play a crucial role in the ASEAN EV industry, Euisun added.

The groundbreaking event was reportedly held at the project site and was attended by Indonesia’s President Joko Widodo, Investment Minister Bahlil Lahadalia as well as Luhut Binsar Pandjaitan, the Coordinating Minister for Maritime and Investment Affairs. The ceremony was virtually attended by Hyundai Motor chief Chung, Hyundai Mobis CEO Cho Sung-hwan and LG Energy Solution CEO Kim Jong-hyun.

Reportedly, the Indonesian government is committed to providing rewards and incentives such as relaxing corporate taxes and tariffs on the required equipment and parts, for constructing the plant there.

Source credit: http://www.koreaherald.com/view.php?ud=20210915000901

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.