From 5 Overseas Financial Institutions
Hyundai Mobis announced on Aug. 22 that Hyundai Motor Group (HMG) and LG Energy Solution have secured US$710 million to finance the construction of a battery cell joint venture plant in Indonesia.
Hyundai Motor Group and LG Energy Solution plan to withdraw the fund sequentially from five overseas financial institutions according to the stage of the construction project. The borrowing period is 10 years.
Hyundai Mobis explained that the project received positive evaluations from the financial institutions, so the two partners could borrow funds at a low interest rate.
Hyundai Motor Co., Kia Corp., Hyundai Mobis and LG Energy Solution provided debt guarantees according to their stake, and the Korea Trade Insurance Corp., a state-run export credit institution, provided credit guarantees, Hyundai Mobis added.
Hyundai Motor Group and LG Energy Solution decided in August 2021 to establish a battery cell joint venture in the Karawang Industrial Complex near Jakarta, Indonesia and invest about US$1.1 billion.
The plant is scheduled to be completed in the first half of 2023 and begin battery cell mass production in the first half of 2024. It is the first overseas joint venture between HMG and LG Group.