Hyundai-LG Hold Groundbreaking Ceremony for Indonesian Battery Cell Plant "Securing Future Industry Competitiveness"

Connecting Local Event Sites with Hyundai Motor Group and LG Energy Solution in Korea via Online Video Conference
Chairman Chung Euisun: "Focusing Group Capabilities to Become a Global Leader in the Electric Vehicle Sector"
President Kim Jonghyun: "One Step Closer to Establishing the First Integrated Electric Vehicle Supply Chain"

The Karawang region in Indonesia, where the joint venture factory of the two companies will be established

[Asia Economy Reporter Changhwan Lee] Hyundai Motor Group and LG Energy Solution have begun full-scale construction of a battery cell joint factory to target the ASEAN electric vehicle market and secure leadership in the global electric vehicle market.

On the 15th (local time), Hyundai Motor Group and LG Energy Solution announced that they held a groundbreaking ceremony for the battery cell factory at the joint factory site within the new industrial complex (KNIC) in the Karawang area of Indonesia.

The groundbreaking ceremony was conducted in a hybrid online and offline format, connecting the local venue with Hyundai Motor Group and LG Energy Solution via video conference, considering the COVID-19 situation.

From the Indonesian side, key government officials attended, including President Joko Widodo, Maritime Investment Coordinating Minister Luhut Panjaitan, and Investment Minister Bahlil Lahadalia.

From Korea, executives from both groups attended via online video connection, including Hyundai Motor Group Chairman Chung Euisun, LG Energy Solution President Kim Jong-hyun, and Hyundai Mobis President Cho Sung-hwan.

In his welcoming speech, Chairman Chung Euisun said, “Hyundai Motor Group is focusing its capabilities to become a global leader in the electric vehicle sector, which is key to securing future competitiveness. As part of these efforts, we have decided to establish a battery cell joint factory in Indonesia with LG Energy Solution, a global leader in electric vehicle batteries.”

Chairman Chung added, “Today’s groundbreaking ceremony is a very meaningful occasion for Indonesia, Hyundai Motor Group, and LG Group to secure future industrial competitiveness and promote sustainable growth.”

He continued, “Starting with the battery cell joint factory, the development of upstream and downstream industries will successfully build an electric vehicle ecosystem in Indonesia. Furthermore, we expect Indonesia to play a key role in the ASEAN electric vehicle market.”

President Kim Jong-hyun said, “Today is a significant day as Indonesia’s first next-generation battery cell factory, which will open the future of the battery industry, takes its first step. With this joint factory establishment, we are one step closer to building the world’s first integrated electric vehicle supply chain.”

President Kim added, “We will do our best to build the best battery cell joint factory and actively foster it as a key base to target the global electric vehicle market.”

Completion Targeted for First Half of 2023

The battery cell joint factory of Hyundai Motor Group and LG Energy Solution, whose construction began on this day, will be built on a total site area of 330,000㎡ with a goal of completion in the first half of 2023, and battery cell mass production is scheduled to start in the first half of 2024.

Through this, the joint factory will be able to produce battery cells on an annual scale of 10 gigawatt-hours (GWh), equivalent to batteries for more than 150,000 electric vehicles. Additionally, considering the future expansion of the electric vehicle market, production capacity is prepared to be increased up to 30 gigawatt-hours (GWh).

The battery cells from the joint factory will be installed in Hyundai and Kia’s dedicated electric vehicles equipped with E-GMP, which will be produced from 2024, as well as various electric vehicles to be developed in the future.

Earlier, Hyundai Motor Group and LG Energy Solution signed a contract to establish the battery cell joint factory this year in the first half, each holding a 50% stake, and in July, through an agreement with the Indonesian government, decided to invest approximately $1.1 billion (about 1.17 trillion KRW). In August, the joint venture was established.

Hyundai Motor Group and LG Energy Solution expect to actively respond to the explosively increasing global electric vehicle demand through the Indonesian battery cell joint factory.

They also anticipate securing leadership in the ASEAN electric vehicle market, including Indonesia, which is expected to grow rapidly thanks to the Indonesian government’s electric vehicle expansion policies and the ASEAN Free Trade Agreement, which includes tariff benefits among ASEAN countries.

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