Indonesia, Hyundai Sign MoU on EV Battery Plant Development

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Laila Afifa

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  • TEMPO.CO, Jakarta - Investment Minister Bahlil Lahadalia in a statement on Thursday announced the MoU signing between the Hyundai consortium and PT Industri Baterai Indonesia (IBI/ the Indonesian battery industry).

    The signing of the memorandum of understanding was done by Hyundai Mobis Co. Ltd. CEO Sung Hwan Cho, the LG Energy Solution (LGES) CEO Jonghyun Kim, and IBI president director Toto Nugroho.

    “To make sure the implementation corresponds with the Law (UU), [the investors] collaborate with national businesses and MSMEs. This has become the government’s concern. We will escort this battery cell investment from start to end,” according to the statement on July 29.

    The law that the Minister mentioned is the Job Creation Law No.11/2020.

    The Hyundai Consortium consists of Hyundai Motor Company, KIA Corporation, Hyundai Mobis, and LG Energy Solution. They will work together with IBI to build an electric vehicle (EV) battery cell factory with a total investment value of US$1.1 billion. The EV battery plant will potentially create job opportunities for 1,000 people. 

    Meanwhile, the IBI is the state-owned holding that consists of four SOEs; state electricity firm PLN, energy firm Pertamina, MIND ID, and state mining company Antam.

    This investment collaboration is a direct link to the US$9.8 billion integrated electric vehicle battery project. The EV battery cell factory groundbreaking is expected to be held before the end of this year. 

    Read: Hyundai Eyeing to Build Electric Vehicles Parallel to ICE Vehicles in Indonesia

    FRANCHISCA CHRISTY ROSANA