Hyundai launches plant to produce Indonesia's first electric car

LG

16/03/2022 08:24

JAKARTA, March 16 (Reuters) - Hyundai Motor Group launched a
new automotive plant on Wednesday that will produce Indonesia's
first locally assembled electric vehicle, part of President Joko
Widodo's goal of developing a full EV supply chain utilising the
country's mineral resources.
    At the plant's inauguration on Wednesday, Jokowi, as the
president is known, said the government was providing incentives
and had removed red tape to try to boost investment in EV
development.
    "We need to be an important player in the global supply
chain of electric cars," he said. 
    "Our country has large mineral resources that can be used
for development of electric cars."
    Indonesia is a major nickel ore producer, an important
material for EV batteries. 
    It also produces cobalt, also used for batteries, and has
large deposits of bauxite and copper ores, which can be used for
EV production, Jokowi said.
    Downstream development of Indonesia's natural resources has
been one of Jokowi's key economic goals to lure foreign
investment and create jobs. 
    By 2024, all EVs produced in Indonesia will use locally made
batteries and other key components, he added.
    Hyundai  005380.KS  in 2019 said it would invest $1.55
billion up to 2030, with starting capacity of 150,000 vehicles
per year, to be later expanded to 250,000 annually. 
    The group's chairman Euisin Chung said the new plant would
also be linked with a Hyundai-LG  003550.KS  joint venture
battery plant, which is scheduled to open in 2024.
    LG Energy Solution (LGES) and Hyundai started construction
of the $1.1 billion EV battery plant in September, which at its
full capacity is expected to produce 10 gigawatt hours of
battery cell power.  urn:newsml:reuters.com:*:nL4N2QH0SQ

 (Reporting by Fransiska Nangoy; Editing by Martin Petty)
 ((Fransiska.Nangoy@thomsonreuters.com;))