Hyundai, LG invest over $1bn in joint EV plantEuropost
The South Korean car maker Hyundai and LG Energy Solutions announced massive investments in a brand new plant, focused on making electric vehicles. The total envisaged investment accounts for 1.1 billion dollars and each partner will cover half of that cost, Reuters elaborated. The new joint venture will be locted in Indonesia and will establish a battery cell plant for electric vehicles.
The new company will help Hyundai and its sister company Kia to secure a stable supply of EV batteries at a competitive price for their battery electric vehicles.
LG Energy Solution, the wholly owned battery subsidiary of LG Chem, and Hyundai signed a memorandum of understanding with the Indonesian government to build the plant in the country, the companies said in a joint statement.
The news comes as global carmakers move to secure EV batteries in anticipation of a rise in sales because of government subsidies and quotas worldwide seeking to cut carbon emissions. Construction of the plant will start in the fourth quarter of 2021 and will be completed by the first half of 2023, the companies said. Indonesia is promoting the domestic development of EV and battery production to create a downstream industry for the country's rich supply of lithium battery ingredient, nickel laterite ore.