...

South Korea's LGES, Hyundai Motor start work on Indonesian EV battery plant




  • In US
  • 2021-09-15 05:02:57Z
  • By Reuters
 

JAKARTA (Reuters) - South Korea's LG Energy Solution (LGES) and Hyundai Motor Group have started construction on a $1.1 billion plant to make batteries for electric vehicles (EVs) in Indonesia, amid a push by the Southeast Asian nation to tap its rich nickel reserves.

In a video broadcast on Wednesday, Indonesian President Joko Widodo said the plant was the first EV battery facility in Southeast Asia and signalled the government's commitment to use its nickel resources to develop downstream industries.

"Indonesia has the world's biggest nickel reserves and with this potential, I believe in the next three to four years, with good management, Indonesia will be the main producer of nickel-based products, such as batteries," Jokowi, as the president is widely known, said at a ground-breaking ceremony.

The battery plant in the Indonesian province of West Java is part of a $9.8 billion investment plan https://www.reuters.com/world/asia-pacific/indonesia-says-98-bln-ev-battery-mou-agreed-with-lg-energy-solution-2020-12-30 for LGES, according to Indonesia's Investment Minister Bahlil Lahadalia, spanning the nickel and battery supply chain.

Jong-hyun Kim, the chief executive of LGES, which is wholly owned by LG Chem Ltd, said in a virtual address batteries will be produced using the company's latest technology and installed in various Hyundai Motor and Kia Motors Corp EVs.

Plant construction will be completed by the first half of 2023, a joint statement from Hyundai Motor Group and LGES said, adding that mass production of battery cells in the new facility is expected to commence in the first half of 2024.

When fully operational, the facility is expected to annually produce 10 gigawatt hours (GWh) of NCMA (nickel-cobalt-manganese-aluminum) lithium-ion battery cells to power more than 150,000 EVs.

In addition, the facility will be ready to increase its production capacity up to 30 GWh to meet future growth, the statement said.

Hyundai Motor Group and LGES expect to develop in Indonesia a battery industry, as well as assembly plants for EVs and recharging infrastructure.

"Through the development of these industries, an EV ecosystem will be successfully developed in Indonesia, and furthermore I am confident Indonesia will play a key role as the hub of Southeast Asia's EVs market," Hyundai Motor Chairman Euisun Chung said.

(Reporting by Bernadette Christina Munthe in Jakarta and additional reporting by Heekyong Yang in Seoul; Writing by Fransiska Nangoy; Editing by Ed Davies)

COMMENTS

More Related News

South Korea urges North to restore hotlines for any talks
South Korea urges North to restore hotlines for any talks
  • World
  • 2021-09-26 09:11:30Z

South Korea on Sunday urged North Korea to restore dormant communication hotlines, a day after the North repeated an offer to open conditional talks. Kim Yo...

Kim
Kim's sister: NKorea willing to talk if Seoul shows respect
  • US
  • 2021-09-25 14:06:19Z

The powerful sister of North Korean leader Kim Jong Un said Saturday that her country will take steps to repair ties with South Korea, and may even discuss...

S.Korea daily COVID-19 cases top 3,000 for first time after holiday
S.Korea daily COVID-19 cases top 3,000 for first time after holiday

South Korea's daily COVID-19 cases topped 3,000 for the first time on Saturday as an outbreak fuelled by three-day holiday this week continued to grow. The ...

What you need to know about the coronavirus right now
What you need to know about the coronavirus right now
  • US
  • 2021-09-24 12:32:45Z

South Korea has set a record for daily COVID-19 cases at 2,434, breaking the previous record set last month, as it grapples with a wave of infections that...

EXPLAINER: Why North Korea wants sanctions lifted first
EXPLAINER: Why North Korea wants sanctions lifted first
  • World
  • 2021-09-24 09:58:43Z

Days after outgoing South Korean President Moon Jae-in made possibly his last ambitious push to diplomatically resolve the standoff over North Korea's...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: US