HLI Green Power, a joint venture between South Korean firms Hyundai and LG Energy Solution and local firm Indonesia Battery Corporation (IBC), has recently inaugurated Indonesia’s first electric vehicle (EV) battery manufacturing plant. The new facility is located in Karawang New Industry City, West Java and was first announced in 2021.

With the production capacity of manufacturing 10GWh of battery cells a year - enough to power 150,000 EVs - in the first phase, HLI Green Power aims to create a comprehensive local EV ecosystem that includes raw materials sourcing, batteries production and recycling, and charging networks support.

The new EV battery manufacturing plant in Indonesia spans a total area of 320,00sqm. (Source: HLI Green Power)

At the opening ceremony, Indonesian President Joko Widodo said he is “pretty sure” that Indonesia can win against other countries with the “Southeast Asia's first and largest EV battery cell plant”.

Nickel-rich Indonesia has an abundance of natural resources, with the construction of EV battery and vehicle manufacturing plant integrated into one ecosystem, the President is confident that the country will become a key player in the EV global supply chain. “Who can stop us when we are that competitive?” added the President.

Hyundai and Kia models to use the battery cells

Hyundai will soon begin mass production of the KONA Electric in a separate manufacturing factory in Indonesia, and the EVs will use the battery cells produced by HLI Green Power.

The battery cells produced at the new plant will be used not only in EVs manufactured at Hyundai's Indonesian factory but also in other Hyundai and Kia models in other countries.

The South Korean automaker said it has established a local integrated production system in Indonesia - from EV battery cells to finished vehicles - allowing a strategic advantage in the Southeast Asian EV market beyond Indonesia.