To Expand EV Battery Production
The size of the electric vehicle (EV) battery project that LG Energy Solutions is promoting in Indonesia reportedly amounts to US$9.8 billion.
The figure was mentioned by Bahlil Lahadalia, the chairman of the Indonesia Investment Coordinating Board, at a news conference held on Dec. 30 following the signing of a memorandum of understanding between the board and the Korean battery producer, according to a Reuters report.
An Indonesian government delegation visited Korea on Dec. 18 and met with Kim Jong-hyun, president of LG Energy Solutions. Both sides signed an MOU but did not reveal its details.
However, it is not known whether US$9.8 billion is LG's total investment in the project or the entire project cost. "We cannot comment on the MOU," an LG official said.
The Indonesian side explained that its agreement with LG included investment in an overall electric vehicle supply chain, according to reports. LG might cooperate with Hyundai Motor and other companies, it added.
Indonesia is a country that produces materials for EV batteries, such as nickel, cobalt and manganese. LG Energy Solutions intends to secure a battery production base in Indonesia to respond to global demand for batteries. Indonesian authorities have strong will to attract investment from global automakers and battery producers to make Indonesia a global EV production hub.