LG Energy Solution and Hyundai Motor Discuss Battery Joint Venture with Indonesian Government

[Asia Economy Reporter Hwang Yoon-joo] LG Energy Solution (LGES) and Hyundai Motor Company are expected to officially establish a joint venture (JV) with the Indonesian government for electric vehicle batteries as early as next week. This will be the first time the two companies build an electric vehicle battery factory in Southeast Asia, interpreted as an intention to secure a leading position in the Southeast Asian electric vehicle market.

According to industry sources on the 25th, LGES and Hyundai are reportedly planning to establish a 10GWh-scale battery cell factory for electric vehicles on the outskirts of Jakarta, Indonesia.

The two companies are reportedly deliberating over the factory location, including Karawang and Batangsi. The most likely site is Karawang, an industrial city located on the outskirts of Jakarta. The companies have obtained long-term land use rights in this area on a lease basis. The joint venture factory plans to produce battery cells, battery packs, and systems.

This investment is understood to be separate from the 'electric vehicle battery package deal' that LGES previously discussed with the Indonesian state-owned battery joint venture (IBI). The business cooperation with IBI is being carried out by LGES in a consortium with POSCO and China’s Huayou Holdings, and is said to involve building a larger-scale battery factory than the JV with Hyundai. Due to many matters to review, such as confirming nickel mine reserves, it is highly likely that the JV establishment with Hyundai will proceed first.

An LGES official stated, "Nothing has been decided yet regarding the establishment of the battery joint venture factory with Hyundai in Indonesia," adding, "We are reviewing detailed matters such as the factory site."

This content was produced with the assistance of AI translation services.