LG led consortium to build a battery factory in Indonesia for EVs

A consortium led by LG Group will build a battery plant in Indonesia to provide parts for South Korean Hyundai Motor Co.’s electric vehicles.

According to people familiar with the matter, the LG consortium consists of three LG subsidiaries, including LG Chem, battery subsidiary LG Energy Solutions, and trading subsidiary LG International, as well as South Korean steel producer Pohang Steel and Chinese cobalt company Huayou Holdings. It is reported that the state-owned Indonesia Battery corp.

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will cooperate with the consortium to build a US$1.2 billion electric car battery factory on the eastern border of Jakarta, with an annual capacity of 10-gigawatt hours (GWh), which will be used in the future Modern electric cars. According to reports, this is also part of a larger $9.8 billion electric vehicle deal signed between LG and Indonesia last year.

At the same time, Indonesia, as the world’s largest nickel producer, hopes to become a major player in the global electric vehicle supply chain, from raw material mining to the battery and electric vehicle manufacturing. Indonesian officials stated that Indonesia plans to produce batteries with a capacity of 140,000 kWh by 2030.

|Via|