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Hyundai/LG Chem consider an EV battery facility in Indonesia

Hyundai/LG Chem consider an EV battery facility in Indonesia

South Korea's Hyundai Motor Group and LG Chem Ltd are studying the feasibility of setting up an electric vehicle (EV) battery cell manufacturing in Indonesia, according to a report by Reuters.

The size of the investment and its production capacity have not been decided.

"Hyundai Motor Group is collaborating with LG Chem on various projects. However, no concrete discussion has been made on a battery joint venture in Indonesia," Hyundai said in a statement to Reuters.

Global automotive makers are moving to secure electric vehicle batteries in anticipation of a rise in EV sales due to government subsidies and quotas designed to cut carbon emissions.

In recent years, battery maker LG Chem has set up separate ventures with both General Motors Co and Geely Automobile Holdings Ltd. LG Chem supplies batteries to Hyundai, Tesla and other automotive makers.

A battery cell joint venture would be the first for Hyundai, widely viewed as a relative latecomer to the EV market. The company is trying to challenge the dominance of Toyota in Indonesia with its upcoming car factory there.

"Indonesia is committed to promoting the EV industry, but it is not yet ready in terms of charging infrastructure and consumers’ purchasing power. A battery joint venture is likely to be a mid- or longer-term plan," analyst Lee Jae-il at Eugene Investment & Securities said.


(IMA)


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