Hyundai group companies and LGES have obtained US$710 million of foreign investment to invest in a joint EV battery cell factory in Indonesia, according to Korean-language media outlet Hankyung.
The South Korean outlet cited a joint statement as saying that Hyundai Motors, Hyundai Mobis, KIA, LGES and PT Indonesian Battery Industry (Battery Indonesia BUMN) are co-building the battery plant.
The EV battery cell factory, PT HKML Battery Indonesia, is located in Karawang and currently under construction.
According to Indonesian Ministry of Investment (BKPM), total investment for the factory could reach US$1.1 billion. The factory is expected to start with 10GWh capacity and to gradually raise capacity to 30GWh after operation will begin in the next two years.
Hyundai to accelerate expansion in the US
Earlier in May this year, Hyundai Motor Group announced that it has entered an agreement with the US state of Georgia to build full electric vehicle and battery manufacturing facilities.
Georgia officials recently stated that Hyundai plans to begin construction of the facilities at the end of October this year so that they can enter operation in the fourth quarter of 2024, according to Yonhap News. The facilities were originally scheduled to begin commercial production in the first half of 2025.
The Georgia investment is approximately US$5.54 billion and is part of the South Korean group's investment project to foster future mobility in the US.
Yonhap News reported that Hyundai is accelerating construction in the US to alleviate the impact from the Inflation Reduction Act, which recently became law in the US. The act requires certain parts of EV, such as batteries, to be manufactured or assembled locally in the US.