Hyundai Motor and LG New Energy will jointly build a battery plant in Indonesia with a total investment of US $1.1 billion

According to foreign media reports, South Korea's Hyundai Motor and LG New Energy (LG Energy Solution), a chemical subsidiary of LG, said today that the two companies will set up a battery joint venture factory in Indonesia with a total investment of US $1.1 billion, with half of each investment.

It is reported that the construction of the Indonesian joint venture plant will begin in the fourth quarter of 2021 and is expected to be completed in the first half of 2023.

Hyundai said the partnership aims to provide a stable battery supply for electric vehicles to be launched by two of its subsidiaries, Hyundai and Kia. According to the plan, Hyundai plans to launch 23 electric models by 2025.

Battery Network noted that the news of Hyundai Motor and LG Chemical's proposed joint venture to build a plant in Indonesia came out last year. As Indonesia is rich in lithium resources, the government is promoting the development of electric vehicles and lithium battery industries.

Indonesia is currently the world's largest nickel producer and exporter. According to the data released by the US Geological Survey, Indonesia has the largest proven nickel reserves in the world, about 21 million tons, accounting for 24% of the world.

But in recent years, Indonesia has begun to restrict nickel exports and even advanced the export ban to January 2020 to attract investors to invest in the construction of new energy vehicles and power battery production bases in Indonesia.

Earlier this year, foreign media said that LG Chemical would lead its LG Chemical and LG International, as well as Posco and China's Huayou Cobalt, to invest and set up plants in Indonesia, including nickel mining, refining, power battery production, and so on.