Indonesia launches first EV battery plant in Southeast Asia

The plant, located in Karawang city, West Java, belongs to PT HLI Green Power, a joint venture between Indonesia’s Battery Corporation and Korean manufacturers Hyundai Motor Group and LG Energy Solution (LGES).

With an investment of US$1 billion, the plant can produce up to 10 Gigawatt hours (GWh) of battery cells every year to provide to 150,000 EVs.

PT HLI Green Power is expected to spend $2 billion to raise the plant's capacity to 20 GWh.

The plant is part of a $9.8 billion EV battery deal signed between Indonesia and LG in 2020.

Speaking at the inauguration ceremony, Indonesian President Joko Widodo emphasized that the opening of the factory marks a new chapter demonstrating Indonesia's desire to become a global partner in the EV supply chain.

Meanwhile, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan affirmed Indonesia's readiness to be a key player in the global EV supply chains.

Indonesia has the world's largest nickel reserves and the reserves of iron, copper, and bauxite which are important components of EV batteries.