Hyundai MotorsThe Group and LG Renewable Energy will jointly establish a battery factory in Indonesia. This is the first such collaboration between the two Korean companies aimed at serving the global electric vehicle market.

According to LG New Energy, a subsidiary of LG Chem, the two companies will invest a total of 1.1 billion US dollars to build Southeast Asia's first plant to produce electric vehicle batteries. The two sides said in a joint statement that construction will begin in the fourth quarter and commercial production will begin in the first half of 2024.

“Indonesia is one of the largest producers of nickel in the world, which is a key raw material for electric vehicle batteries,” Hyundai Motor and LG New Energy said in a statement on Thursday. “The Indonesian government has agreed to provide various incentives and incentives to support the stable operation of the plant.”

The new plant will be built in Karawang, 65 km southeast of Jakarta, with a production capacity of 10 GWh, enough to assemble more than 150,000 electric vehicles.