Jakarta – The Ministry of Investment has announced that Indonesia is gearing up for the mass production of electric vehicle (EV) batteries, set to commence in April 2024. This move signals a significant milestone in the nation’s automotive industry and underscores the advantages of its downstreaming policy.

Tina Talisa, Special Staff at the ministry, emphasized the role of downstreaming in extracting added value from Indonesia’s abundant natural resources, such as nickel. She stated,

“Downstreaming is a way to create added value from abundant natural resources in Indonesia, one of which is nickel.”

The upcoming mass production will be spearheaded by PT Hyundai LG Industry (HLI) Green Power, a joint venture between South Korea’s Hyundai Motor Group and LG Energy Solution, located in Karawang, West Java.

Talisa highlighted that this initiative positions Indonesia as the pioneer in EV battery cell production within Southeast Asia. It also reflects the government’s steadfast commitment to fostering the development of the national EV battery ecosystem.

Moreover, Talisa noted that Indonesia will be the first in Southeast Asia to utilize LG’s cutting-edge technology in EV battery production. This advancement is expected to create employment opportunities for Indonesian youth, elevating them to professional roles and ultimately boosting the economy.

Hong Woo Pyoung, President Director of PT HLI Green Power, affirmed the company’s readiness for mass production. He emphasized that Indonesia’s EV battery industry will nurture a new generation of skilled engineers capable of innovating in electric vehicle battery cell manufacturing.

In its initial phase, PT HLI has received a substantial investment of US$1.1 billion, enabling a production capacity of 10 gigawatts per hour (GWh). This capacity equates to approximately 32.6 million battery cells, sufficient for manufacturing around 150 thousand electric vehicles.

Looking ahead, PT HLI plans to ramp up its production capacity to 20 GWh by 2025, marking a significant expansion in Indonesia’s EV battery manufacturing capabilities.