An ecosystem electric cell factory for electric vehicles (EVs) has officially commenced operations in Indonesia. This was marked by the inauguration of a factory in Karawang, West Java, on Wednesday (3/7/2024) by the Indonesian government and a consortium from South Korea, namely Hyundai Motor Group and LG Energy Solution.

As known, this first electric cell factory operates under PT Hyundai LG Indonesia (HLI) Green Power. Located in Karawang, West Java, it began commercial production of electric vehicle batteries in April 2024.

Key Point:

• President Jokowi highlighted Indonesia's wealth of natural resources as a significant advantage in achieving this goal.
• The investment in PT HLI Green Power builds upon the Memorandum of Understanding (MoU) signed between the Ministry of Investment/BKPM and the consortium of Hyundai, LG, and IBC on July 28, 2021.

Euisun Chung, Executive Chairman of Hyundai Motor Group, expressed that completing the electric cell factory in Indonesia is a source of great pride. For him, this signifies the progress we have achieved and demonstrates the strength of our partnership.

"Most importantly, this confirms that through collaboration, Hyundai Motor Group and Indonesia are shaping the future of the EV ecosystem not only in Southeast Asia but also globally," Euisun Chung stated during the inauguration in Karawang, West Java, on Wednesday (3/7/2024).

In his view, earlier this year, the International Energy Agency projected that more than half of global car sales would shift to electric vehicles by 2035. Currently, Indonesia stands at the forefront of this future more than ever before.

"Hyundai Motor Group is convinced that activating the electric vehicle industry in Indonesia will create new economic opportunities for the entire Southeast Asian region," he added.

Euisun also noted that President of Indonesia Joko Widodo has set a target to domestically produce 600,000 electric vehicles by 2030.

"I believe this target is very reasonable. This country is the largest automotive market in Southeast Asia. Vehicles produced and sold here set the standard for the entire ASEAN region with 700 million potential customers. Moreover, the mineral resources in this country, such as iron and nickel, are crucial components of electric cell that will power millions of electric vehicles worldwide," explained Euisun.

President Jokowi, in his address, added that laying the foundation for commitment to become a global player in the electric cell and electric vehicle ecosystem is crucial. Indonesia possesses abundant natural resources.

"But for decades we have only exported raw materials without added value, and our resources are depleting. With the establishment of smelters and electric vehicle electric cell factories, Indonesia will become a significant global player in the global supply chains for electric vehicles," President Jokowi emphasized.

"Most importantly, Indonesia must become a global player in electric vehicle supply chains."

"This has already begun, and this is the first and largest factory in Southeast Asia. I am confident that in this condition, with mines, nickel, bauxite, and copper here, smelters here, entering cathodes and precursors, and entering electric cell, and then car factories here, integrated for electric vehicles, who can stop us in this competition with other countries," Jokowi concluded.

Read More: Indonesia Discovers New Clean Energy Source That Could Replace Fossil Fuels.

As known, PT HLI Green Power is a joint venture between Hyundai Motor Company, LG Energy Solution, and PT Indonesia Battery Corporation (IBC). The investment by PT HLI Green Power is a follow-up to the Memorandum of Understanding (MoU) signed between the Ministry of Investment/BKPM and the Hyundai-LG-IBC consortium on July 28, 2021.

Furthermore, in September 2023, Jokowi visited PT HLI Green Power to directly review the production process and results of electric vehicle electric cell.

In the first phase, PT HLI absorbed an investment of US$1.1 billion and has a production capacity of 10 gigawatt/hour (GWh), comprising 32.6 million electric cell capable of producing approximately 150,000 electric vehicles. In the second phase, expected in 2025, PT HLI plans to increase production capacity to 20 GWh.

Source :https://www.cnbcindonesia.com/news/20240703103617-4-551348/pabrik-baterai-listrik-terbesar-se-asean-resmi-beroperasi-di-ri