The new battery manufacturing plant slotted to build in Indonesia between Hyundai and LG worth $1.1 Billion, which supply batteries to Kia and Hyundai.
- New battery manufacturing plant for Hyundai and LG slatted to be built in Indonesia
- The plant gets a combined investment of worth $1.1 Billion
- Construction of facility will be commenced later this year and could get completed by 2023
South Korean auto major Hyundai Motor groupe and LG energy solution have announced a new joint venture of developing a new battery manufacturing facility in Indonesia. The Two companies a few days ago reviled their plans for the plant and signed an MoU with the Government of Indonesia for setting the new EV battery plant. The new plant will be built in kerrang, Indonesia near the country’s capital of Jakarta, and sanctioned a combined investment of $1.1 Billion. Hyundai and LG will be the combined owner of the plant with a 50% stake in the new joint venture of the plant.
The New plant will help the Hyundai and Kia to be able to maintain a stable supply for the EV batteries that too within a competitive price range. The construction facility is slated to commence in the fourth quarter of this year itself and completion of the facility could be over in 2023. Mass production of EV batteries will be commenced in a factory by 2024 first half. The annual production of batteries from the facility stands at a total of 10GWh, enough for 150,000 E-GMP-based EVs. the main reason to build the facility in Indonesia as it is one of the main producers of Nickel which is important for EV batteries.
Along with the Kerrawang has a well-established transport network, including highways, better roads connectivity, seaports, and airports. The New Hyundai-LG facility will be built on 330,000 Square meters of land. When the manufacturing plant is fully constructed then it will continue to supply the EV battery to Hyundai and Kia. Although the demand for electrified vehicles has been increasing globally, the brands will benefit heavily from this JV. Hyundai Motor groupe planning to launch at least 23 different models in its combined electric vehicles line-up by 2023 and aims to dispatched billion of units annually.