Hyundai Motor Group and LG Energy Solution Ltd. began construction of an electric vehicle (EV) battery cell plant in Indonesia, the companies said on Wednesday.
The two South Korean conglomerates announced an investment of $1.1 billion for the joint venture, each owning a 50% ownership stake.
Mass production of battery cells in the new facility is expected to commence in the first half of 2024, after the completion of the plant's construction by the first half of 2023.
Once fully operational, the facility is expected to produce a total of 10 gigawatt-hours' worth of lithium-ion battery cells every year, enough for more than 150,000 electric vehicles.
Battery cells will be used in Hyundai Motor and Kia's EV models.
The companies signed a Memorandum of Understanding with the Government of Indonesia in July 2021 to establish a joint venture in Indonesia to manufacture battery cells for electric vehicles.
By Zeynep Beyza Kilic