Two major firms, Hyundai Motor Group and LG Chemical are working to set up an electric vehicle (EV) battery plant in Indonesia, South Korea media reported on Monday (06/22) - Photo by the Company

JAKARTA (TheInsiderStories) – Two major firms, Hyundai Motor Group and LG Chemical are working to set up an electric vehicle (EV) battery plant in Indonesia, South Korea media reported on Monday (06/22). Both will utilize the new plant as a hub to target the future electric car market in Southeast Asia.

Its expecting the joint venture contract will signs in July of this year. On Monday, Hyundai Motor’ vice chairman, Chung Eui-sun and LG Chemical’ chairman Koo Kwang-mo had the first official meeting to discuss expanding cooperation in the EV business.

So far, LG Chemical has supplied lithium-ion car batteries to all Hyundai Motor EV, such as the Kona EV and Ioniq Electric. Recently, the manufacturer was appointed as a supplier of batteries for Hyundai’ next-generation electric vehicles to be launched in 2022.

In addition, the parties have agreed to explore startups abroad with advanced technology in the field of electric vehicles and car batteries, to expand into potential businesses.  Last year, Indonesia and Hyundai has signed an investment deal US$1.5 billion to build EV factory in Cikarang, Bekasi, West Java.

The investment to be carried out in two stages, during 2019 – 2021 and 2022 – 2030. In the first phase, the producer will investing on the car manufacturing plants and will export at least of 50 percent of the total production. In the second phase, will focus on developing an electric car factory, transmission plant, research and development, training center, and the production to be exported as much as 70 percent.

Hyundai will begin production in 2021 with a capacity up to 250,000 units per year, including electric cars. In the meeting, the company also proposed the car maker to maximize the use of raw materials from Indonesia and cooperating with local entrepreneurs, like using battery materials from Morowali Industrial Park, tires and rubber from the country.

Coordinating minister for maritime and investment affairs, Luhut Pandjaitan said, the government was serious about supporting the success of electric car investment in Indonesia. He asserted, the two sides want to develop and produce vehicle with new models to meet the needs of Asian and Australian consumers.

Korean companies in Indonesia run industries in various fields ranging from minerals, textiles, telecommunications, machinery, automotive, electronics and others.

Written by Staff Editor, Email: theinsiderstories@gmail.com