Indonesia will now make 10 GWh of EV batteries every year as Indonesia launches its new EV manufacturing plant on Wednesday.
Indonesia has the largest reserves of nickel in the world and it is utilizing this position to become the largest economy in the region and has the potential to place itself in one of the top positions in the world in the supply chain of EV vehicles.
This electric plant is a joint venture between South Korean manufacturers Hyundai Motor Group and LG Energy Solutions which have built this plant that produces or can make 10 Gigawatt hours (GWh) of battery cells every year.
Indonesia Launches Its First EV Battery Plant
This plant in Indonesia is located in the West Javan town of Carawang and the owner of this plant Widodo says that this plant is the biggest in South East Asia.
Widodo also said that this is a new chapter for Indonesia that has the potential to transform itself into a global power.
This is what Widod said in the launch:
"We have abundant natural resources, but for decades we only exported it in the form of raw materials without added value
But now with smelters being built, with the electric vehicle battery cell being built, we will become an important global player in the global supply chain for electric vehicles.
The plant is part of a $9.8 billion electric vehicle battery deal signed between Indonesia and LG in 2020.
It will produce batteries for Hyundai’s electric vehicles, with 50,000 of its Kona Electric SUV expected to be powered by the Indonesian-made battery.
Joint venture company PT HLI Green Power is expected to spend $2 billion to raise the plant's capacity to 20 GWh.
Hyundai Motor Group executive chairman Euisun Chung said that Indonesia’s electric vehicle industry would create new economic opportunities.
This country is the biggest automotive market in Southeast Asia. The vehicles that are produced and sold here are the standard for the Southeast Asian region with 700 million potential customers.
The mineral resources in this country, such as iron and nickel, are important components of the battery that will mobilise millions of electric vehicles in Indonesia."
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