Indonesia Ready to Mass Produce Electric Vehicle Batteries by April

Indonesia’s Ministry of Investment has said the country is ready to mass produce electric vehicle (EV) batteries from April 2024.

The mass production will mark a new stage in the Southeast Asian country’s automotive industry and signify the benefits of down streaming policy.

“Down streaming is a way to create added value from abundant natural resources in Indonesia, one of which is nickel,” said Tina Talisa, Special Staff to the Minister of Investment.

According to Talisa, mass production will be carried out through PT Hyundai LG Industry (HLI) Green Power, a joint venture company between South Korea’s Hyundai Motor Group and LG Energy Solution, which is based in Karawang, West Java.

Talisa said that the move will not only make Indonesia the first EV battery cell producer in Southeast Asia but also highlight the government’s commitment to supporting the national EV battery ecosystem development project.

Talisa also highlighted that the massive production of EV battery cells would make Indonesia the first country in Southeast Asia to use the latest technology from LG to produce EV battery cells.

This will also directly trigger an absorption of Indonesian young workers to become professional workers, thereby ultimately boosting the community’s economy.

President Director of PT HLI Green Power Hong Woo Pyoung stated that Indonesia’s EV battery industry would later be able to create young pioneer engineers who are capable of professionally creating electric car battery cells.

He affirmed that his side had trained Indonesian engineers for a year and said that the training would continue to be provided.

In the first phase, PT HLI received an investment of US$1.1 billion and has a production capacity of 10 gigawatts per hour (GWh) with 32.6 million battery cells that could be used to produce approximately 150 thousand electric vehicles.

In the second phase, PT HLI plans to increase its production capacity to 20 GWh in 2025.