LG Energy to build new electric car battery factory in Indonesia
Worth US$1.2 billion
LG Energy Solution will build a new battery plant in Indonesia with the government-owned Indonesia Battery Corporation (IBC), according to a report by Reuters.
The project is worth US$1.2 billion and will secure a capacity of 10GWh, the report said.
Batteries made at the factory will be used for EVs from Hyundai, Reuters quoted Investment Minister Bahlil Lahadalia as saying.
The factory will be built a the city of Bekasi, on the eastern border of the capital Jakarta, the report added.
Last year on December 18, LG Energy Solution signed an electric car battery collaboration deal with the Indonesian government.
At the time, the size of the deal or which automobile company will be part of it wasn’t announcement. The Indonesian government latter announced a US$9.8 billion electric vehicle investment plan. The plan includes production of batteries, recycling, and nickel mining.
Indonesia has large nickel reserve, which makes making cathode their convenient.
Hyundai Motor has previously said it plans to build a car factory there with a capacity of 250,000 units.