Hyundai Motor Group has made significant strides in Indonesia, transforming the country into a central hub for its electric vehicle (EV) ecosystem. Through strategic investments in manufacturing, supply chains, and local partnerships, Hyundai has expanded its automotive footprint in Indonesia, aligning with the country’s ambitious goals for sustainability and industrial growth.
Hyundai Motors has recently become the first automaker to establish a complete EV supply chain in Indonesia. This achievement was highlighted by the inauguration of the joint venture Hyundai LG Indonesia Green Power in July 2024. The $1.1 billion joint venture with LG Energy marked the beginning of commercial production of lithium-ion battery cells in Indonesia, which are used to power Hyundai’s EV models.
Located in Karawang New Industry City, the plant produces 10 gigawatt-hours of battery cells annually, enough to support over 150,000 EVs. This project is a critical element of Hyundai’s strategy to dominate the fast-growing EV market in Indonesia and target the larger southeast Asian market as well.
Hyundai’s vision for Indonesia extends far beyond battery production. In March 2022, Hyundai inaugurated the company’s first car plant in Southeast Asia, in Indonesia. Spanning 777,000 square meters, the factory produces multiple EV and Hybrid car models, which are popular in Indonesia. These vehicles are powered by the batteries manufactured at the Indonesian Battery plant, creating a vertically integrated production cycle. Hyundai aims to increase its presence in southeast Asia by establishing more efficient supply chain systems with the help of this plant.
Hyundai’s entry into Indonesia is part of a broader strategy to tap into the ASEAN market, where the population exceeds 670 million people, many of whom are young, tech-savvy, and open to new trends. Indonesia, with its rapidly growing middle class and substantial government incentives, is seen as a key market for Hyundai’s EV expansion.
The Indonesian government, under President Joko Widodo, has set a bold target to produce 600,000 EVs by 2030, alongside the ambition to become a top five global EV battery producer by 2040. Hyundai’s investments align with these goals, offering an ideal platform to support Indonesia’s transition to a green economy.
Hyundai’s decision to focus on Indonesia is both strategic and timely. Indonesia boasts the world’s largest reserves of nickel, a crucial component in EV batteries.
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