Hyundai has launched a new automotive plant that will produce Indonesia’s first locally assembled EV.

In 2019, Hyundai said it would invest $1.55 billion in the plant by 2030. Initial capacity is 150,000 vehicles per year, and this will later be expanded to 250,000.

The new assembly plant will be linked with a Hyundai-LG joint venture battery plant that’s scheduled to open in 2024. LG Energy Solution and Hyundai started construction of the $1.1-billion EV battery plant last September. At full capacity it’s expected to produce 10 GWh worth of battery cells per year.

Indonesia is a major producer of raw materials used in EV batteries, including nickel, cobalt, bauxite (aluminum ore) and copper. President Joko Widodo says developing a full EV supply chain using the country’s mineral resources is one of his key economic goals. By 2024, all EVs produced in Indonesia will use locally made batteries and other key components, he said.

At the plant’s inauguration ceremony, “Jokowi” said his government has provided incentives and eliminated red tape in order to encourage investment in EV development. “We need to be an important player in the global supply chain of electric cars,” he said.

Source: Reuters