Hankyung, a Korean-language news source, reports that LGES and the Hyundai Group have secured US$710 million in foreign investment for a combined EV battery cell facility in Indonesia.
According to a joint statement reported by the South Korean outlet, the battery factory is being co-built by Hyundai Motors, Hyundai Mobis, KIA, LGES, and PT Indonesian Battery Industry (Battery Indonesia BUMN).
In Karawang, PT HKML Battery Indonesia is building an EV battery cell facility that is currently under construction.
The Indonesian Ministry of Investment (BKPM) estimates that the factory’s overall investment might amount to US$1.1 billion. The factory is anticipated to commence operating in the next two years with a 10GWh capacity and subsequently increase capacity to 30GWh.
Hyundai will quicken its growth in the US
Hyundai Motor Group stated in May of this year that it had reached a deal with the Georgian state of the United States to construct factories for the production of fully electric vehicles and batteries.
According to Georgia officials, Hyundai intends to start building the facilities at the end of October this year so that they can start operating in the fourth quarter of 2024. The initial plan for the facilities was for them to start producing commercially in the first half of 2025.
The about $5.54 billion investment in Georgia is a component of the South Korean group’s investment plan to promote future mobility in the US.
According to Yonhap News, Hyundai is quickening construction in the US to lessen the effects of the recently passed Inflation Reduction Act. The act mandates that specific EV components, including batteries, be produced or assembled locally in the US.