Indonesia has taken a monumental step in the electric vehicle (EV) industry by inaugurating Southeast Asia’s first EV battery manufacturing plant in Karawang, West Java Province.
The plant, owned by HLI Green Power—a joint venture between Indonesia Battery Corporation and South Korean automotive leaders Hyundai Motor Company and battery manufacturer LG Energy Solution—was officially opened on Wednesday. This collaboration marks a significant international partnership aimed at strengthening the EV supply chain.
“This is Southeast Asia’s first and largest EV battery cell plant. I am confident we can win against other countries with this,” declared Indonesian President Joko Widodo during the inauguration ceremony. His optimism reflects Indonesia’s ambition to become a dominant player in the global EV market.
With the world’s largest nickel reserves, along with abundant bauxite and copper, Indonesia is strategically positioning itself to lead the electric vehicle industry. The integration of smelter and precursor industries enhances its capability to produce essential components for EVs.
The initial $1 billion investment aims to produce 10 GWh of battery cells annually, sufficient to power approximately 150,000 electric vehicles. Plans are already underway to expand production capacity to 20 GWh in the future, further solidifying Indonesia’s role in the EV sector.
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, speaking at the same event, emphasized Indonesia’s readiness to become a key player in the global EV supply chain with an integrated ecosystem involving international stakeholders. “This effort is aimed at reducing carbon emissions while improving air quality and the quality of life for our people,” he stated.
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Indonesia inaugurates Southeast Asia's first EV battery plant
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