Hyundai Motor Group and LG Chem’s LG Energy Solution have announced a 50/50 joint venture to manufacture battery cells for electric cars in Indonesia. The South Korean partners have signed a Memorandum of Understanding (MoU) with the Government of Indonesia to build a gigafactory in Karawang, near the Indonesian capital Jakarta.
Hyundai Motor Group and LG Energy Solution are likely to begin plant construction in the fourth quarter of 2021 and complete the plant by the first half of 2023, while the mass production is expected to commence in the first half of 2024.
As reported on insideevs.com, the main reason behind the interest in battery production in Indonesia is related to nickel. Indonesia is one of the world’s largest producers of nickel (a key element in LG’s NCM and NCMA cathodes). Access to the nickel supply will be given to companies that will invest in local production of the final products.
According to the plan, the joint venture will produce LG Energy Solution’s latest lithium-ion NCMA battery cells (nickel, cobalt, manganese and aluminum cathode) cells for Hyundai Motor Group’s Hyundai and Kia models, based on the E-GMP platform.
This type of cell soon will be used also in Tesla cars produced in China (replacing NCM 811), according to previous reports. The NCMA chemistry willo be used also by Ultium Cells LLC joint venture between LG Energy Solution and GM.
The plan for Indonesia is to produce 10 GWh of NCMA cells annually, which is enough for more than 150,000 battery electric vehicles. The investment is estimated at $1.1 billion.