Source: AFP
Indonesia opened its first electric vehicle battery factory on Wednesday, President Joko Widodo said, as Southeast Asian countries move to gain a foothold in the emerging industry.
The country, which is the region’s largest economy and home to the world’s largest nickel deposit, is seeking to position itself as a key player in the global electric vehicle supply chain.
The plant is a joint venture between South Korean manufacturers Hyundai Motor Group and LG Energy Solution (LGES) and can produce up to 10 Gigawatt hours (GWh) of battery cells each year.
Widodo said the plant, located in the West Java city of Karawang, was “the largest in Southeast Asia”.
Its opening marked “a new chapter” that underscored the resource-rich nation’s ambition to become a global player in the electric vehicle supply chain, Widodo said at the launch.
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“We have abundant natural resources, but for decades we have only extracted them in the form of raw materials with no added value,” he said.
“But now by building foundries, by building the electric vehicle battery, we will become a major global player in the global electric vehicle supply chain.”
The plant is part of a $9.8 billion electric vehicle battery deal signed between Indonesia and LG in 2020.
It will produce batteries for Hyundai’s electric vehicles, with 50,000 of its Kona Electric SUV expected to be powered by the Indonesian battery.
Joint venture company PT HLI Green Power is expected to spend $2 billion to increase the plant’s capacity to 20 GWh.
Hyundai Motor Group Executive Chairman Euisun Chung said Indonesia’s electric vehicle industry will create new economic opportunities.
“This country is the largest car market in Southeast Asia. The vehicles produced and sold here are the standard for the Southeast Asian region with 700 million potential customers,” he said through an interpreter.
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“Mineral resources in this country, such as iron and nickel, are important components of the battery that will power millions of electric vehicles in Indonesia.”
Source: AFP
