DIGIVESTASI - The electric vehicle (EV) battery ecosystem factory officially commenced operations in Indonesia, marked by the inauguration of the plant in Karawang, West Java, on Wednesday (7/3/2024) by the Indonesian government and a consortium from South Korea, namely Hyundai Motor Group and LG Energy Solution.

This first battery cell factory is operated by PT Hyundai LG Indonesia (HLI) Green Power, which began commercial production of EV batteries in April 2024 in Karawang, West Java.

Euisun Chung, Executive Chairman of Hyundai Motor Group, expressed his pride in the completion of the battery cell plant in Indonesia. According to him, this is a testament to the progress achieved and signifies the strength of their partnership.

"This confirms that by working together, Hyundai Motor Group and Indonesia are shaping the future of the EV ecosystem not only in Southeast Asia but also worldwide," said Euisun Chung at the inauguration in Karawang on Wednesday (7/3/2024).

Euisun also highlighted the International Energy Agency's prediction that more than half of global car sales will switch to electric vehicles by 2035, and Indonesia is now at the heart of that future more than ever.

"Hyundai Motor Group believes that activating the EV industry in Indonesia will provide new economic opportunities for all of Southeast Asia," he said.

Euisun added that Indonesian President Joko Widodo (Jokowi) has set a target to produce 600,000 electric vehicles domestically by 2030. Euisun believes this target is very reasonable considering Indonesia is the largest automotive market in Southeast Asia with important mineral resources such as iron and nickel.

In his speech, President Jokowi added that with abundant natural resources, Indonesia is committed to becoming a global player in the EV ecosystem. He emphasized that Indonesia must become a major player in the electric vehicle supply chain.

"This has started, and this is the first and largest factory in Southeast Asia. I am confident that we will win our competition with other countries," said Jokowi.

PT HLI Green Power is a joint venture company between Hyundai Motor Company, LG Energy Solution, and PT Indonesia Battery Corporation (IBC). The investment by PT HLI Green Power follows the signing of a Memorandum of Understanding (MoU) between the Ministry of Investment/BKPM and the Hyundai, LG, and IBC consortium on July 28, 2021.

In September 2023, Jokowi visited PT HLI Green Power to directly observe the process and results of EV battery cell production. In the first phase, PT HLI absorbed an investment of US$ 1.1 billion and has a production capacity of 10 gigawatt-hours (GWh), consisting of 32.6 million battery cells that can produce about 150,000 electric vehicles. In the second phase, expected by 2025, PT HLI plans to increase production capacity to 20 GWh.

Minister of Investment/Head of BKPM Bahlil Lahadalia revealed that Indonesia has become the first country in the world to have an integrated electric car manufacturing ecosystem from nickel raw materials to electric car factories.

Bahlil also thanked South Korea for its bold execution in establishing this electric battery plant. He mentioned that South Korea's investment value in the last five years has reached US$ 14 billion or more than Rp 200 trillion. Specifically for Hyundai, the accumulated investment value reaches US$ 11 billion to US$ 12 billion, both for electric battery plants and electric cars.

"This is a new chapter where we witness the inauguration of an integrated car battery factory," said Bahlil.

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