Why is Hyundai launching a battery plant in Indonesia?

Hyundai and LG Energy Solution have opened a $1.1bn battery cell plant in Indonesia as the south-east Asian country works to build an electric vehicle ecosystem. The launch of the country’s first battery plant on Wednesday is part of Indonesia ’s push to move up the global EV supply chain.

Will Indonesia become largest EV battery producer in 2027?

Last year, state-owned Antara news agency published an article entitled “Indonesia to become largest EV battery producer in 2027: Minister”.3 The headline was well in keeping with the government’s persistent push of the nickel-to-EV narrative and its vow to place Indonesia as a dominant player in the global battery and EV supply chain.

Can Indonesia become a key battery and EV production base in Southeast Asia?

Indonesia can become a key battery and EV production base in Southeast Asia, but in the current trajectory, the country is unlikely to meet the promise of leveraging its nickel resources to reach the aspired higher-value battery and EV supply chain at significant scale.

What are EV batteries made of in Indonesia?

Most of EV batteries, such as NMC battery, contains a cathode made up of lithium, nickel, manganese, and cobalt. Indonesia needs 70,000 of lithium hydroxide annually, yet still imports the mineral from China, Australia, and Chile. The market dynamics of critical minerals also affect the battery supply chain in Indonesia.

Which EV battery manufacturer is building a battery plant in Indonesia?

China’s CATL, the world’s biggest EV battery manufacturer, has also started building a battery plant in the country, said Indonesian officials.

Why is Indonesia launching its first EV battery plant?

The launch of the country’s first battery plant on Wednesday is part of Indonesia ’s push to move up the global EV supply chain. Indonesia has the world’s largest reserves of nickel, a crucial component in EV batteries and steelmaking.