Indonesia opens first electric vehicle battery factory in Southeast Asia

Indonesian President Joko Widodo accompanies Hyundai Motor Group Chairman Chung Eui Sun during a visit to a battery and electric vehicle factory in Karawang, West Java province, Indonesia on July 3 - Photo: AFP

"This is the first and largest electric vehicle battery factory in Southeast Asia. With this factory, I believe we can win against other countries," Indonesian President Joko Widodo said at the inauguration ceremony, according to Xinhua News Agency.

The plant is a joint venture between Indonesia Battery Corporation and South Korean automaker Hyundai, along with battery maker LG Energy Solution.

Indonesia is the country with the world's largest reserves of nickel, which is one of the key ingredients for producing electric vehicle batteries.

With abundant reserves of nickel, bauxite and copper, along with related industries, Indonesia aims to dominate the electric vehicle market.

The plant can produce up to 10 gigawatt hours (GWh) of batteries per year, enough to power 150,000 electric vehicles, and has plans to expand to 20 GWh in the future.

According to AFP, the factory is part of a $9.8 billion electric vehicle battery production deal signed between Indonesia and LG in 2020. The factory will produce batteries for Hyundai electric vehicles, of which 50,000 Kona Electric vehicles are expected to use Indonesian-made batteries.

At the ceremony, Coordinating Minister for Investment and Maritime Affairs Luhut Binsar Pandjaitan said Indonesia is ready to become a key player in the global electric vehicle supply chain, with an integrated ecosystem involving many parties.

Mr. Luhut added that this effort is being made to reduce carbon emissions, while improving air quality and quality of life for people.

Hyundai Motor Group Chairman Chung Eui Sun said Indonesia's electric vehicle industry will create new economic opportunities.

“This country is the largest car market in Southeast Asia. The cars produced and sold here are the benchmark for the Southeast Asian region, with 700 million potential customers,” he said.

Source: https://tuoitre.vn/indonesia-khanh-thanh-nha-may-pin-xe-dien-dau-tien-o-dong-nam-a-20240703181635536.htm