View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
July 29, 2021

Hyundai and LG agree EV battery JV in Indonesia

A new South Korean joint venture will make EV batteries.

By Graeme Roberts

Hyundai Motor Group announced it had agreed to establish a joint venture in Indonesia with its South Korean EV battery supplier LG Energy Solution to manufacture lithium-ion batteries for electric vehicles (EVs).

Free Report
img

What does the future hold for the US electric vehicles market?

The US Electric Vehicles (EV) market has established itself as one to watch. Despite China maintaining the number one spot, the US holds significant standing as one of the major EV markets, with GlobalData’s whitepaper identifying a strong growth trajectory within the forecast period. This report further analyzes the trends, market drivers, and government incentives set to influence and facilitate the market.   This report also looks beyond the US and touches on environmental concerns set to drive the EV market worldwide.   Want to find out more? This report demonstrates GlobalData Explorer’s sector analysis capabilities, showing how you can:  
  • Get historical and forecast market sizing data, with country specific insight for 22+ of the world’s largest industries
  • Track sector dealmaking activity, to view aggregate volumes, specific deals and top investors for all major deal types in M&A, Capital Raising, and Partnerships
  • Analyze news from GlobalData Explorer’s News Database – enable screening and alerts by industry, company, geography and news sentiment for filtered insight
  • Identify and track the key disruptive trends that are keeping the top digital thought leaders talking through social media analytics
  Consult this report now to find out how you and your company can benefit from our Explorer platform.
by GlobalData
Enter your details here to receive your free Report.

The two companies signed a Memorandum of Understanding (MoU) with the Indonesian government which has agreed to provide tax holidays and investment incentives for the new company.

According to the agreement, Hyundai Motor Group, through its main module and systems subsidiary Hyundai Mobis, and LG Energy Solution will invest a combined US$1.1bn in the joint venture, with each company taking a 50% stake.

The signing ceremony was held in Seoul, attended by Hyundai Mobis president and CEO Sung Hwan Cho and LG Energy Solution president and CEO Jong Hyun Kim, with Indonesia investment minister Bahlil Lahadalia and president director of Indonesia Battery Corporation (IBC) Toto Nugroho joining the ceremony remotely.

Construction of a new plant in an industrial zone in Karawang, 70km east of Jakarta, is set to begin in the fourth quarter of 2021 with completion scheduled for the first half of 2023.

The plant will have an initial manufacturing capacity of 10 GWh of lithium-ion battery cells per year, enough to power more than 150,000 EVs. Mass production is scheduled to begin in the first half of 2024.

The plant will supply batteries for Hyundai and Kia EV models built on the group’s dedicated Electric-Global Modular Platform (E-GMP).

Hyundai said in a statement: “The new factory will help Hyundai and Kia produce vehicles with high efficiency, performance and safety by supplying battery cells optimised for the two automakers’ BEV models.”

Indonesia is one of the world’s largest producers of nickel, a key raw material used in EV batteries. The Indonesian government has been looking to develop an EV industry ecosystem so the country can play a pivotal role in the global EV industry.

Hyundai Motor Group added: “The joint venture will help Hyundai and Kia secure a stable supply of batteries at a competitive price for our upcoming EVs.” It plans to expand its EV lineup to 23 models and generate global annual sales of 1m EVs by 2025.

Free Report
img

What does the future hold for the US electric vehicles market?

The US Electric Vehicles (EV) market has established itself as one to watch. Despite China maintaining the number one spot, the US holds significant standing as one of the major EV markets, with GlobalData’s whitepaper identifying a strong growth trajectory within the forecast period. This report further analyzes the trends, market drivers, and government incentives set to influence and facilitate the market.   This report also looks beyond the US and touches on environmental concerns set to drive the EV market worldwide.   Want to find out more? This report demonstrates GlobalData Explorer’s sector analysis capabilities, showing how you can:  
  • Get historical and forecast market sizing data, with country specific insight for 22+ of the world’s largest industries
  • Track sector dealmaking activity, to view aggregate volumes, specific deals and top investors for all major deal types in M&A, Capital Raising, and Partnerships
  • Analyze news from GlobalData Explorer’s News Database – enable screening and alerts by industry, company, geography and news sentiment for filtered insight
  • Identify and track the key disruptive trends that are keeping the top digital thought leaders talking through social media analytics
  Consult this report now to find out how you and your company can benefit from our Explorer platform.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto