Indonesia Set to Commence Mass Production of Electric Vehicle Batteries in April 2024

Jakarta, INTI – As a tangible proof that nickel downstreaming is not just a discourse, the Ministry of Investment/Indonesia Investment Coordinating Board (BKPM) ensures that Indonesia is ready to make history in the automotive industry by commencing mass production of the first electric vehicle batteries in the country. PT Hyundai LG Indonesia (HLI) Green Power, based in Karawang, West Java, will kick off commercial production of electric vehicle batteries in April 2024. This milestone not only marks Indonesia as the first producer of electric vehicle battery cells in Southeast Asia but also solidifies the Indonesian government's commitment to supporting the development of the electric vehicle battery ecosystem, valued at USD 9.8 billion or IDR 142 trillion.

During her visit to PT HLI Green Power on February 21, 2024, Special Staff of the Ministry of Investment/BKPM Tina Talisa emphasized that under President Joko Widodo's leadership, the government aims to focus on downstreaming. Therefore, the government pays special attention following the groundbreaking in September 2021.

"Downstreaming is a way to create added value from Indonesia's abundant natural resources, one of which is nickel. This is why there is an investment in the first integrated electric vehicle battery project in the world with a grand package of USD 9.8 billion. So, it's integrated from upstream mining, then to the smelter, refining, processing, precursor, cathode, and finally into battery cells," explained Tina.

Tina also added that the production of electric vehicle battery cells will make Indonesia the first country to produce electric vehicle battery cells in Southeast Asia using the latest technology from LG. Consequently, Indonesian youth employed in this project will also become the first electric vehicle engineers in Southeast Asia. Tina expressed her hope that downstreaming will create employment opportunities where workers have high skills, leading to higher incomes and lifting Indonesia out of the middle-income trap.

President Director of PT HLI Green Power, Hong Woo Pyoung, stated HLI's readiness for mass production. Additionally, Hong revealed that the electric vehicle battery industry in Indonesia will produce pioneering young engineers with expertise in electric vehicle battery manufacturing.

"We have prepared everything since September 2023. We are ready to commence mass production in April 2024. We have trained Indonesian engineers for a year, and we will continue to provide training. They are very smart, diligent, and competent. We are very proud of the engineers from Indonesia," said Hong Woo Pyoung.

PT HLI Green Power is a joint venture between Hyundai Motor Company, LG Energy Solution, and PT Indonesia Battery Corporation (IBC). The investment by PT HLI Green Power is a follow-up to the signing of a Memorandum of Understanding (MoU) between the Ministry of Investment/BKPM and the Hyundai-LG-IBC Consortium on July 28, 2021. Subsequently, in September 2023, President Joko Widodo visited PT HLI Green Power to directly review the process and results of electric vehicle battery cell production.

In the first phase, PT HLI absorbed an investment of USD 1.1 billion and has a production capacity of 10 gigawatt/hour (GWh), consisting of 32.6 million battery cells capable of producing approximately 150,000 electric vehicles. In the second phase, expected in 2025, PT HLI plans to increase production capacity to 20 GWh.