Indonesia took a significant step in its electric vehicle (EV) ambitions on Wednesday with the launch of its first EV battery plant in West Java. President Joko Widodo hailed the facility as "the biggest in Southeast Asia," marking a new chapter in the country's push to become a global player in the EV supply chain.
The plant, a joint venture between South Korea's Hyundai Motor Group and LG Energy Solution (LGES), has an initial capacity to produce 10 Gigawatt hours (GWh) of battery cells annually. It's part of a larger $9.8 billion EV battery deal signed between Indonesia and LG in 2020.
Highlighting Indonesia's shift from raw material exporter to value-added manufacturer, Widodo stated, "We have abundant natural resources, but for decades we only exported it in the form of raw materials without added value. But now with smelters being built, with the electric vehicle battery cell being built, we will become an important global player in the global supply chain for electric vehicles."
The facility will initially supply batteries for Hyundai's electric vehicles, with plans to power 50,000 Kona Electric SUVs. The joint venture company, PT HLI Green Power, aims to invest $2 billion to double the plant's capacity to 20 GWh.
Hyundai Motor Group's executive chairman, Euisun Chung, emphasized Indonesia's potential as the largest automotive market in Southeast Asia, with access to 700 million potential customers in the region. He also noted the importance of Indonesia's mineral resources, particularly iron and nickel, as crucial components for EV batteries.
(Source: AFP)