Hyundai and LG EV Battery Factory in Karawang to Start Production in 2024

Hyundai Motor Group and LG Energy Solution are reported to have planned to build an EV (Electric Vehicle) battery factory in Indonesia. In the project, the two South Korean companies received loan funds of US$ 710 million or around Rp. 10.5 trillion.

According to a Yonhap report, they got the funds from five different international financial companies with maturities of up to 10 years.

Later on, Hyundai Motor Co, Kia Corp, Hyundai Mobis Co and LG will provide debt guarantees proportional to the value of their shares in the project to build an electric vehicle battery factory in Indonesia.

Meanwhile, a trade insurance company based in Seoul, Korea Trade Insurance Corp., will also provide credit guarantees in the process of establishing the EV battery factory .

Still from the same report, this electric car battery factory will later be built in the Karawang area, West Java. The factory is planned to start production in 2024.

The electric vehicle battery factory is the result of a joint venture between an automotive group and a well-known battery manufacturer in South Korea. In total, the joint venture disbursed US$1.1 billion (Rp 16.3 trillion) for an EV battery factory in Karawang.

The joint factory was previously planned to produce battery cells worth 10 gigawatt hours per year. This number is claimed to be able to run more than 150,000 electric cars. They will also increase its capacity to 30 gigawatt hours.