SEOUL, May 25 (Korea Bizwire) — A consortium led by the South Korean conglomerate LG will build a battery factory in Indonesia to supply parts for Korean automaker Hyundai Motor Co.’s electric vehicles, according to industry sources Tuesday.
The LG consortium consists of three LG subsidiaries, including LG Chem Ltd., battery arm LG Energy Solution Ltd. and trading unit LG International Corp., as well as Korean steelmaker POSCO and Chinese cobalt company Huayou Holdings, sources familiar with the matter said.
The consortium is expected to announce more details as early as next week, the sources said. LG Energy didn’t comment on the project.
Indonesia’s Investment Minister Bahlil Lahadalia has said in a statement that the state-run Indonesia Battery Corp. will cooperate with the consortium to build a $1.2 billion EV battery factory with an annual capacity of 10 gigawatt hours (GWh) in the eastern border of Jakarta.
Indonesia, the world’s largest nickel producer, has set a goal of becoming a major player in the global EV supply chain, ranging from raw material mining to manufacturing batteries and EVs.