Hyundai Motor Group and LG Energy Solutions set out to establish a battery cell joint venture to target the ASEAN EV market.
According to Hyundai Motor Group on the 29th, the two companies signed an investment agreement with the Indonesian government to establish a battery cell joint plant with an annual capacity of 10 gigawatt hours (GWh) in Indonesia.
Hyundai Mobis President Cho Sung-hwan and LG Energy Solution President Kim Jong-hyun met on the 28th at the LG Energy Solution headquarters in Yeouido. Indonesia's Minister of Investment, Bahril Rahadalia, attended the signing ceremony via online video.
Prior to the signing of this agreement, Hyundai Motor Group and LG Energy Solutions signed a contract to establish a battery cell joint factory. They decided to invest about $1.1 billion (worth 1.17 trillion won) to establish a joint factory. Hyundai Motor Group and LG Energy Solutions each hold 50% of the shares in the joint venture.
Hyundai Motor Group and LG Energy Solutions plan to complete the establishment of a joint venture in the third quarter (July-September) after going through various legal procedures and start construction of the joint plant in the fourth quarter (October-December). It is targeted for completion in the first half of 2023. In the first half of 2024, it plans to start mass production of battery cells.
Reporter Lee Ji-sun stockmk2020@gmail.com