Indonesia inaugurates first electric vehicle battery plant in Karawang
(MENAFN) Indonesia marked a significant milestone on Wednesday with the launch of its first electric vehicle battery plant, announced by President Joko Widodo. This development underscores Southeast Asia's concerted efforts to establish a foothold in the burgeoning electric vehicle industry.
As the region's largest Economy and home to the world's largest nickel reserves, Indonesia has strategically positioned itself to play a pivotal role in the global electric vehicle supply chain. The newly inaugurated plant, situated in the West Javan town of Karawang, is a joint venture between South Korean giants Hyundai Motor Group and LG Energy Solution (LGES). It has the capacity to produce up to 10 Gigawatt hours (GWh) of battery cells annually, making it the largest facility of its kind in Southeast Asia.
President Widodo emphasized that the plant's inauguration marks "a new chapter" in Indonesia's industrial strategy, highlighting the nation's shift from merely exporting raw materials to adding value through domestic manufacturing capabilities. He expressed confidence that Indonesia's abundant natural resources, now utilized in facilities like this battery plant, will elevate the country's status as a key global player in the electric vehicle supply chain.
"We have abundant natural resources, but for decades we only exported it in the form of raw materials without added value," President Widodo remarked. "But now with smelters being built, with the electric vehicle battery cell being built, we will become an important global player in the global supply chain for electric vehicles."
The battery plant is a pivotal component of a substantial USD9.8 billion electric vehicle battery deal inked between Indonesia and LG back in 2020. It is set to manufacture batteries specifically for Hyundai's electric vehicles, with initial plans to power 50,000 units of the Kona Electric SUV using Indonesian-made batteries.
This initiative not only positions Indonesia at the forefront of the electric vehicle revolution but also underscores its commitment to sustainable industrial growth and technological advancement in the region and beyond.
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