Mubo to Support LG Energy Solution's Indonesia Factory with '1 Trillion' Won... Completion Scheduled for First Half of Next Year

The headquarters of Korea Trade Insurance Corporation located in Jongno-gu, Seoul. [Photo by Korea Trade Insurance Corporation]

[Asia Economy Sejong=Reporter Lee Junhyung] Korea Trade Insurance Corporation will support LG Energy Solution with about 1 trillion won for the secondary battery factory being built in Indonesia.

Korea Trade Insurance Corporation announced that it will provide long-term export financing worth $710 million (about 1 trillion won) for LG Energy Solution's electric vehicle battery factory project in Indonesia. The project involves constructing a large-scale battery factory in the Karawang Industrial Complex near Jakarta, Indonesia. Hyundai Motor Company, Kia, and Hyundai Mobis also participated in the project.

The annual production capacity of the Indonesian battery factory is 10GWh. It will be completed in the first half of next year and start mass production from 2024. Batteries produced at the Indonesian factory will be supplied to Hyundai and Kia. The industry expects LG Energy Solution to maximize synergy effects by producing high-performance and high-efficiency batteries optimized for Hyundai and Kia electric vehicle models in Indonesia.

It is also significant that leading domestic automakers and battery companies are jointly building an electric vehicle value chain. Many domestic partner companies are participating in the Indonesian battery factory project, supplying raw materials and production facilities. The Indonesian factory is evaluated to serve as a foothold for domestic small and medium-sized enterprises to advance overseas.

Lee In-ho, President of Korea Trade Insurance Corporation. [Photo by Korea Trade Insurance Corporation]

Meanwhile, Korea Trade Insurance Corporation selected electric vehicles and batteries, key industries in energy transition, as priority support projects this year. Until last month, the corporation has already supported financing worth $1.51 billion (about 2 trillion won) for overseas electric vehicle and battery production facility investments. Institutional marketing targeting small and medium-sized enterprises in battery core materials is also expanding.

Lee Inmo, president of Korea Trade Insurance Corporation, said, "We consider it meaningful to support the first overseas joint venture of domestic battery and electric vehicle companies with world-class technology," adding, "We will actively support core material and component companies to enhance industrial competitiveness and lead the global market."

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