In a landmark event for Indonesia’s electric vehicle (EV) ecosystem, Hyundai Motor Group and LG Energy Solution inaugurated the battery cell plant “HLI Green Power” in Karawang New Industry City (KNIC), Indonesia. This plant marks the completion of Hyundai’s local integrated production system from battery cells to finished electric vehicles, cementing Indonesia’s strategic position in the ASEAN electric vehicle market.
Hyundai Establishes Indonesia’s First EV Battery Production
Hyundai Motor Group has now completed the construction of the battery cell plant HLI Green Power, a joint venture with LG Energy Solution. The plant will produce battery cells for the all-new KONA Electric, which will be manufactured at Hyundai Motor Company’s Indonesian plant. This development makes Hyundai the first company in Indonesia to establish a local integrated production system from EV battery cells to finished vehicles.
Indonesia’s Strategic Advantage
Indonesia, with its large reserves of nickel—a key component in EV batteries—and its significant position in the raw materials supply chain, offers a strategic advantage for Hyundai. The country is the world’s fourth most populous and a key member of ASEAN, with substantial growth potential in the EV market. This positions Indonesia as a pivotal player in the global electric vehicle industry.
The Inauguration Ceremony
The “Indonesia EV Ecosystem Completion Ceremony” was attended by high-profile figures from both Indonesia and Korea. Indonesian President Joko Widodo, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Investment Bahlil Lahadalia, Minister of Industry Agus Gumiwang Kartasasmita, Minister of Public Enterprises Erick Thohir, and West Java Governor Bey Triadi Machmudin graced the event. Key Korean officials, including Director-General for Trade Jeong In-kyo and Ambassador to Indonesia Lee Sang-deok, were also present.
From Hyundai Motor Group and LG Group, Chairman Chung Eui-sun, President Chang Jae-hoon, and President Kim Dong-myung, along with local employees, attended the event.
Remarks from Indonesian President Joko Widodo
In his congratulatory remarks, President Joko Widodo highlighted the significance of the day in establishing Indonesia’s role in the global electric vehicle and battery ecosystem. He expressed gratitude towards Hyundai Motor Group and Chairman Chung Eui-sun for their commitment to this important project. President Widodo emphasized that the integrated battery ecosystem between Hyundai Motor Group and LG Energy Solution will further strengthen the relationship between Korea and Indonesia.
Remarks from Chairman Chung Eui-sun
Chairman Chung Eui-sun remarked that the completion of the Indonesian battery cell plant and the mass production of the Kona Electric symbolize the strong partnership between Hyundai Motor Group and Indonesia. He noted that vehicles produced and sold in Indonesia set new standards for potential customers in Southeast Asia, and the revitalization of Indonesia’s EV industry would create new economic opportunities for the entire region. Chung also introduced future cooperation plans, including resource-circulating hydrogen solutions and future air mobility.
Remarks from Jeong In-gyo
Jeong In-gyo, head of the Trade Negotiation Headquarters, congratulated Hyundai Motor Company on being the first to mass-produce EVs equipped with Indonesian batteries in Indonesia. He emphasized that this place, the birthplace of bilateral cooperation in EVs, would lead the development of Indonesia’s electric vehicle industry.
President Widodo’s Participation
To add significance to the event, President Joko Widodo directly participated in assembling battery cells produced by HLI Green Power into battery modules and packs. He also signed the first All-New Kona Electric vehicle produced in Indonesia. Widodo’s involvement underscored the government’s support for the EV industry and the strategic importance of this project.
Strategic Benefits and Future Prospects
The establishment of HLI Green Power provides numerous strategic benefits for Indonesia. The local production of battery cells will reduce dependency on imported materials and boost the domestic EV industry. The joint venture with LG Energy Solution ensures a steady supply of high-quality battery cells, crucial for the mass production of EVs like the Kona Electric.
The integrated production system enhances Indonesia’s position as a leader in the ASEAN electric vehicle market. By leveraging its abundant nickel reserves, Indonesia can become a hub for EV battery production and export, attracting further investment and fostering technological advancements in the sector.
Economic and Environmental Impact
The economic impact of this development is substantial. It will create jobs, stimulate local economies, and contribute to the overall growth of Indonesia’s manufacturing sector. Environmentally, the shift to electric vehicles supported by locally produced batteries will help reduce greenhouse gas emissions, lower air pollution, and improve public health.
Government Support and Incentives
The Indonesian government has been actively supporting the EV industry through various incentives and policies, including tax breaks, subsidies, and infrastructural support. These efforts aim to attract investments and encourage the growth of local manufacturing capabilities. The success of HLI Green Power is a testament to the effectiveness of these initiatives.
