Hyundai Motor revving up Indonesia’s EV potential

South Korea’s Hyundai Motor is building a complete electric vehicle (EV) supply chain in Indonesia, a drive in line with the Southeast Asian nation’s policy of moving away from raw mineral exports and into more value-added production.

In early July, Hyundai LG Indonesia Green Power (HLI Green Power), a joint venture between Hyundai Motor and LG Energy Solution, announced the completion of a new factory in Karawang New Industry City, near Jakarta, the capital. It has since commenced production of EV batteries at the new facility.

The batteries will charge Hyundai Motor’s new KONA Electric SUV, under production at its auto factory in nearby Cikarang. Founded in 2019, Hyundai Motor Manufacturing Indonesia began assembling EVs there in 2022.

Hyundai Motor is South Korea’s largest automaker and, together with its affiliate Kia, is currently the third-largest automaker in the world. LG Energy Solution is the world’s third-largest producer of EV batteries after China’s CATL and BYD. It is a subsidiary of LG Chem, South Korea’s largest chemical company.

Karawang New Industry City operates industrial parks dedicated to the auto, consumer electronics, construction materials and food sectors, small and medium-sized enterprises, and a logistics service center. It is located near seaports and airports, and has easy access to the road and rail networks of the island of Java.

LG Energy Solution, LG Chem, their affiliated trading company LX International and the Indonesian government are also working to establish a complete EV manufacturing supply chain in the country, covering the gamut from nickel mining and smelting to battery production and vehicle assembly to EV charging infrastructure and used battery recycling.

At the HLI Green