LG Energy Solution to set up battery plant in Indonesia
LG Energy Solution will build a US$1.2 billion battery factory in the Indonesian city of Bekasi, east of Jakarta, together with the state-owned Indonesia Battery Corporation (IBC), according to a media report. The initial annual capacity is to be 10 GWh.
This is what the news agency Reuters writes with reference to corresponding information from the Indonesian Minister of Investment. The minister did not give a time frame, but said that the factory would be built for the equivalent of one billion euros “in the near future”. The cells produced there are to be used, among other things, in Hyundai’s electric cars.
According to the minister’s statement, in addition to the spun-off battery division LG Energy Solution, LG Chem, LG International as well as the South Korean steel group Posco (as a manufacturer of battery materials) and the Chinese cobalt supplier Huayou are also involved in the consortium. The Indonesia Battery Corporation is a merger of several state-owned companies from various industries.
A spokesperson for LGES did not want to comment for the time being when asked by media representatives, so the information cannot yet be regarded as certain, even though the construction of such a plant is considered likely: The battery factory is part of a larger investment agreement between LG and Indonesia. This agreement provides for an investment volume of the equivalent of eight billion euros. CATL is also apparently planning a battery factory in Indonesia.
Indonesia is one of the most important nickel producers in the world since about a quarter of the global deposits are located there. The government wants to build up a processing industry based on these resources with batteries and electric cars. This has lured a number of international manufacturers; in 2019, Toyota and Hyundai made corresponding commitments.
The first battery factories by LG and possibly CATL are to be followed by others, and the existing factories could also be extensively expanded, at least if the Indonesian government has its way. The report quotes officials as saying that a production capacity of 140 GWh is to be reached in the country by 2030.
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