Hyundai chief visits Indonesia EV battery plant, targeting growth

Home > Business > Industry

Hyundai chief visits Indonesia EV battery plant, targeting growth

Published: 08 Sep. 2023, 15:36

SARAH CHEA
chea.sarah@joongang.co.kr

Hyundai Motor Group Executive Chair Euisun Chung inspects Hyundai's battery plant in Karawang Regency, Indonesia. [HYUNDAI MOTOR]

Hyundai Motor Group Executive Chair Euisun Chung visited the Hyundai Indonesia plant Thursday to inspect the battery cell factory and discuss business strategies to target the growing electric vehicle market.

The inspection came as part of Chung's visit to Indonesia with Korean President Yoon Suk Yeol for his attendance at the Asean summit.

Chung inspected Hyundai and LG Energy Solution’s joint battery plant in Karawang Regency, Indonesia, 65 kilometers (40.4 miles) southeast of the capital of Jakarta, and met with Hyundai employees to discuss their future strategies for strengthening EV businesses.

Chung, center, inspects its battery plant in Karawang Regency, Indonesia. [HYUNDAI MOTOR]

Chung inspects Hyundai's battery plant in Karawang Regency, Indonesia. [HYUNDAI MOTOR]

The factory will have an annual production capacity of 10 gigawatt-hours, or enough for approximately 150,000 EVs, and will begin operation in 2024. Its batteries will be sourced to Hyundai’s plant in Bekasi of West Java, Indonesia — the automaker’s first in the Asean region.

With the world's fourth-largest population, Indonesia is emerging as the latest manufacturing hub for Korean companies due to its geographical advantages and richness in natural resources essential to making EV batteries. Indonesia has the world's largest nickel reserves estimated at 21 million tons, around 22 percent of the total, according to U.S. Geological Survey data.

Hyundai Motor is currently the No. 1 EV maker in the Southeast Asian market, with a total of 3,913 EVs sold in Indonesia this year through the end of July, grabbing 56.5 percent of the market share.

Chung inspects Hyundai's battery plant in Karawang Regency, Indonesia. [HYUNDAI MOTOR]

Chung, center, inspects Hyundai's battery plant in Karawang Regency, Indonesia. [HYUNDAI MOTOR]

It beat China's Wuling Motors with 28.1 percent and Toyota Motors with 5.2 percent, according to data from the Association of Indonesia Automotive Industries.

Hyundai Motor is also strengthening the EV charging infrastructure in Indonesia by signing a deal with local retailer Lippo Malls Indonesia to install EV charging stations in 52 shopping mall branches across Indonesia.

BY SARAH CHEA [chea.sarah@joongang.co.kr]