It has been confirmed on Monday that Hyundai Motor Group and LG Chemical are working to set up an electric vehicle battery joint venture in Indonesia. The two companies will build electric vehicle-only battery production lines in the country and utilize it as a hub to target the future electric car market in Southeast Asia.
The two South Korean companies are still discussing the detailed size and timing of the investment. Their original target was to sign a contract to set up a joint venture in July this year, but the discussion has been temporarily on hold since March due to business uncertainties caused by COVID-19. “The two companies have been in discussion for a while. We are currently working with the local authorities to discuss incentives, such as tax benefits for constructing a local plant,” said a member of LG Chemical.
Hyundai Motor Group is growing its plants in Indonesia as the hub of its ASEAN strategy. An option to establish a joint venture in South Korea had been reviewed until the beginning of this year. However, Indonesia was selected at the end according to Hyundai Motor Group’s request for a stable battery supply.
Hyundai Motor Group’s Vice Chairman Chung Eui-sun and LG Chemical’s Chairman Koo Kwang-mo had the first official meeting, the two companies announced on Monday. The two visited the electric vehicle battery production lines of LG Chemical’s Ochang plant and discussed comprehensive cooperation measures regarding electric vehicles on Monday morning. The management of Hyundai Motor Group shared the future battery technologies – for example, the long-lasting battery that is being developed by LG Chemical, lithium-sulfur battery, solid-state battery, etc. – and their development directions.
Dong-Il Seo email@example.com