Hyundai Motor-LG Energy Solution Indonesia Battery Plant Selected as Global 'Deal of the Year'

Hyundai Mobis, Key Role in Fundraising

Hyundai Motor Group and LG Energy Solution's joint investment in an Indonesian battery cell factory has been selected as the "Deal of the Year."

The UK-based financial research firm TXF (Trade Export Finance) announced on the 6th that "the establishment of the joint battery cell factory in Indonesia between the two companies is a significant development for the electric vehicle transition in the Asian region." TXF is known to have highly recognized the value of the joint factory investment and praised the smooth financing process.

In August last year, Hyundai Motor Group and LG Energy Solution successfully secured a long-term low-interest loan (10 years) of $710 million (approximately 923.4 billion KRW) from five overseas financial institutions for the battery cell joint factory investment. Hyundai Mobis played a leading role in this process, attracting high participation from domestic and international financial institutions during the deal. They also succeeded in securing the investment funds according to the scheduled timeline. Notably, Korea's representative export credit agency, the Korea Trade Insurance Corporation, provided credit guarantees. This was the first time the agency participated in an electric vehicle-related financial deal.

Meanwhile, the factory, which began construction in September 2021, is nearing completion. Full-scale battery cell mass production is set to begin in the first half of next year. The joint factory is expected to produce battery cells with an annual capacity of 10 gigawatt-hours (GWh), enough for more than 150,000 electric vehicles.

Hyundai Motor Indonesia Factory Overview
[Photo by Hyundai Motor]

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