LG Energy Solution together with Hyundai Motor Group will invest USD 1.1 billion in the construction of a plant producing cells for electric cars. The new factory will be built in the Indonesian city of Karawang, 50 km from the capital Jakarta. The cooperation agreement was signed in Seoul between the two companies and the Indonesian government. Under the agreement, the two companies have established a joint venture in which they will each hold a 50% stake.
Construction of the plant is scheduled to be completed in the first half of 2023, while mass production of cells will start in the first half of 2024. The target capacity of the plant will be 10 GWh, which will translate into equipping more than 150,000 electric vehicles per year.
The cells produced at the Karawang plant will be used in electric cars from brands such as Hyundai Motor Company and Kia Worldwide.