Indonesia's Jokowi Opens Southeast Asia's Largest EV Battery Factory in Karawang
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3 July 2024 13:44 WIB
TEMPO.CO, Jakarta - President Joko Widodo or Jokowi inaugurated the PT Hyundai LG Industry (HLI) Green Power electric vehicle (EV) battery factory in Karawang, West Java, on July 3, 2024. This South Korean-backed facility is touted as the first and largest battery cell plant in Southeast Asia.
The battery cell factory represents a significant investment of US$3.1 billion (Rp45.88 trillion) and is part of a larger, integrated "Grand Package" battery project encompassing the entire supply chain. Located in Karawang New Industry City (KNIC), the facility boasts a projected capacity of 30 GWh once fully operational.
President Jokowi hailed the inauguration as a crucial step for Indonesia to become a major player in the global electric car industry. "With this factory, along with a smelter, we’ll be a key player in the electric vehicle supply chain," he declared in his speech.
South Korean Trade Minister Jeong In-kyo emphasized the positive impact on bilateral relations with the inauguration of the factory. He expressed optimism that cooperation between Indonesia and South Korea, encompassing nearly 2,000 private sector entities, can flourish further.
“I believe that Indonesian EVs with it’s batteries will be soon marketed in ASEAN and global markets,” said In-Kyo.
The PT HLI Green Power project is being developed in two phases. The first phase, with an investment of US$1.1 billion (Rp16.28 trillion), has already been completed and boasts a production capacity of 10 GWh. Commercial production commenced in April 2024.
Construction for the second phase, with an investment of US$2 billion (Rp29.60 trillion), began in January 2024 and is slated for commercial production in March 2025. This phase will significantly increase production capacity to 20 GWh.
PT HLI Green Power is a joint venture between Hyundai Motor Company, LG Energy Solution, and PT Indonesia Battery Corporation (IBC). This investment builds upon a Memorandum of Understanding (MoU) signed between the Indonesian Investment Ministry (BKPM) and the Hyundai, LG, and IBC Consortium in July 2021.
DANIEL A FAJRI
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