According to foreign media reports, the Indonesian Minister of Investment said that Indonesian battery company (IBC) and a consortium led by South Korea's LG Group will soon begin to build an electric vehicle battery factory with an investment of 1.2 billion US dollars. The consortium consists of LG Energy Solutions of the LG Group, LG Chemical and LG International, South Korean steelmaker Posco and Chinese cobalt producer Huayou Holdings.

The plant will be built in the Kota Deltamas industrial zone in (Bekasi), West Java province, about a two-hour drive from the capital, Jakarta. The plant was built near Hyundai Motor, another South Korean company whose first Indonesian factory is nearing completion.

Indonesia is the world's largest producer of nickel, and nickel is one of the important raw materials for electric vehicle batteries. The country hopes to build an electric car battery industry at home with its large nickel reserves. Indonesian government officials say they want the country to produce 140 GWH of batteries by 2030.

The IBC-LG plant is expected to have a capacity of 10 GWH. (BKPM), Indonesia's investment coordinating committee, announced on May 24th that batteries produced by the plant would be used in modern electric vehicles.

Bahlil Lahadalia, Minister of Investment and head of BKPM, said: "after a long process, we can finally break ground. In addition to creating jobs, the plant can also help Indonesia upgrade from a producer and exporter of raw materials to a major player in the global supply chain for the electric vehicle battery industry. "

However, Lahadalia did not disclose the exact start time. BKPM said the two sides signed the agreement on April 29 and that IBC and LG are currently focusing on a joint study and working out the details of the construction of the plant. IBC is also involved in joint research on another battery project conducted by the Chinese company Ningde Times.