>> Indonesia encourages use of electric vehicles
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Indonesian President Joko Widodo (center) and Hyundai Motor Group Executive Chairman Chung Eui-sun (left) on July 3 in Karawang, West Java. |
Photo: AFP/VNA/CVN |
The archipelago, the region's leading economy and home to the world's largest nickel deposits, is seeking to position itself as a key player in the global supply chain for electric vehicles.
The plant, located in the city of Karawang in West Java, is a joint venture between South Korean automakers Hyundai Motor Group and LG Energy Solution (LGES).
“Biggest factory (of batteries) from Southeast Asia”According to President Joko Widodo, it can produce up to 10 gigawatt hours (GWh) of battery cells each year, a capacity that is to be increased to 20 GWh.
Its opening marks “a new chapter” which underlines the country's ambition to become a global player in the electric vehicle supply chain, Indonesian President Prabowo Subianto, who will hand over the presidency next October, said on Wednesday (July 3).
“We have abundant natural resources, but for decades we have exported them only as raw materials with no added value”he said.
“But now, with the construction of foundries and this plant, we will become a major global player in the global supply chain of electric vehicles,” added the one that the Indonesians call Jokowi.
The construction of the production site was planned as part of a USD 9.8 billion (EUR 9.1 billion) deal for electric vehicle batteries signed between Indonesia and LG in 2020.
The plant will produce batteries for Hyundai's electric vehicles, which will equip 50,000 units of the Kona SUV.
Indonesia is “the largest automobile market in Southeast Asia. The vehicles that are produced and sold here are the standard for a region of 700 million potential customers,” said Euisun Chung, Chairman of Hyundai Motor Group.
AFP/VNA/CVN