Hyundai and LG Energy Solution begin construction of EV battery cell plant

Hyundai Motor Group and LG Energy Solution Ltd. began with the construction of an electric vehicle (EV) battery cell plant in Indonesia, to ensure leadership in the global battery electric vehicle (BEV) market.

Euisun Chung, president of Hyundai Motor Group, said that the company is focusing its capabilities on becoming a global leader in the electric vehicle market, so the key is to ensure future competitiveness, and one of the strategies to achieve this is through this plant.

“From this plant, an electric vehicle ecosystem will be successfully established in Indonesia with the development of various related industries. Furthermore, we expect Indonesia to play a key role in the ASEAN electric vehicle market, ”he said. 

Likewise, Jong-hyun Kim, president and CEO of LG Energy Solution, commented that with this factory a new era of the battery industry for electric vehicles in the country begins, so they are one step closer to establishing the world's first comprehensive supply chain for electric vehicles .

"LG will do everything possible to make the joint battery cell manufacturing facility a key base for conquering the global electric vehicle market," he said.

In July 2021, Hyundai Motor Group and LG Energy Solution signed a Memorandum of Understanding (MoU) with the Indonesian Government to establish a joint venture to manufacture battery cells for BEV, generating an investment of 1.1 billion dollars , each with a 50 percent stake.

The new battery cell factory will be built on a 330,000 square meter site. It will be completed in the first half of 2023 and mass battery cell production at the new facility is expected to begin in the first half of 2024. 

When fully operational, the facility is projected to produce a total of 10 GWh of NCMA Li-ion Battery Cells each year , enough for more than 150,000 BEV. In addition, it will be ready to increase its production capacity up to 30 GWh to meet the growth of BEV's future needs.

The battery cells produced in Karawang be used in electric vehicle models from Hyundai Motor and Kia built on the platform Modular Global Electrical (E-GMP) . Additionally, the new factory will help automotive brands produce vehicles with high efficiency, performance and safety by supplying battery cells optimized for the BEV models of the two automakers.

Both companies hope to ensure a stable supply of battery cells for electric vehicles in the coming years, as global demand for electric vehicles is expected to continue to increase. 

Hyundai will help increase the plant's production efficiency with its expertise in vehicle and compartment manufacturing. And it will also help the joint venture to produce battery cells with the highest performance and safety with its integrated quality management systems.