Hyundai Motor Group and LG Energy Solution announced that they have signed a memorandum of understanding or Memorandum of Understanding (MoU) with the Indonesian Government to form a joint venture in Indonesia as an effort to produce battery cells from battery-powered electric cars or BEVs.
On 28 July 2021, Sung Hwan Cho, President and CEO Hyundai Mobis, and Jong Hyun Kim, President LG Energy Solution, carried out the MoU signing ceremony which was held at the LG Energy Solution head office, Seoul. Bahlil Lahadalia, Indonesian Minister of Investment, and Toto Nugroho, President Director of Indonesia Battery Corporation (IBC) also attended the ceremony virtually.
Through this MoU, Hyundai Motor Group and LG Energy Solution will invest USD worth of funds 1,1 billion in joint venture to build a battery cell factory in Karawang, Indonesia.
Hyundai Motor Group and LG Energy Solution will each have rights 50% share ownership in this joint venture.
The Indonesian government agreed to support through various incentives for the smooth, stable operational process of the factory.
Construction of the plant is scheduled to begin in the fourth quarter of the year 2021, and will be completed in the first semester of the year 2023. Meanwhile, mass production of battery cells at this new facility is expected to start in the first half of the year 2024.
Through joint venture for the production of these battery cells, Hyundai Motor Group and LG Energy Solution further strengthen the strategic partnership that began more than a decade ago.
