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Sabtu, 09 Maret 2024

Tangible Proof of Nickel Downstreaming: Indonesia Ready for Mass Production of Electric Vehicle Batteries in April 2024

Jakarta, March 9, 2024 – As tangible proof that nickel downstreaming is not just a discourse, the Ministry of Investment and Downstream Industry/BKPM ensures that Indonesia is ready to make history in the automotive industry with the start of mass production of the country’s first electric vehicle (EV) batteries. PT Hyundai LG Indonesia (HLI) Green Power, based in Karawang, West Java, will begin commercial production of EV batteries in April 2024. This milestone not only establishes Indonesia as the first producer of EV battery cells in Southeast Asia but also underscores the Indonesian Government's commitment to supporting the development of an electric vehicle battery ecosystem (grand package) valued at USD 9.8 billion or approximately IDR 142 trillion.

During her visit to PT HLI Green Power on February 21, 2024, Tina Talisa, Special Staff of the Ministry of Investment and Downstream Industry/BKPM, reaffirmed that under President Joko Widodo's leadership, the government is focusing on advancing downstreaming. She emphasized the importance of this initiative, following the groundbreaking that took place in September 2021.


“Downstreaming is a way to add value to Indonesia’s abundant natural resources, such as nickel. The process integrates the supply chain from upstream to downstream, which is why we have the world's first integrated electric vehicle battery investment worth USD 9.8 billion. This integration starts from the mining operations, then to smelters, refining, processing, precursor production, cathode manufacturing, and finally, to battery cells,” Tina explained.


She further stated that the production of EV battery cells will make Indonesia the first Southeast Asian country to produce EV battery cells using LG's latest technology. This achievement will also enable young Indonesian workers to become pioneers in EV engineering in the region. Tina expressed her hope that downstreaming would create high-skilled jobs, leading to higher income levels and helping Indonesia escape the middle-income trap.


PT HLI Green Power’s President Director, Hong Woo Pyoung, expressed the company’s readiness for mass production. He also highlighted that Indonesia’s EV battery industry would produce young pioneering engineers skilled in EV battery cell manufacturing.


“We have been preparing for this since September 2023. We are ready to begin mass production in April 2024. We have trained Indonesian engineers for a year and will continue to provide training. They are intelligent, diligent, and highly competent. We are very proud of Indonesia’s engineers,” said Hong Woo Pyoung.


PT HLI Green Power is a joint venture between Hyundai Motor Company, LG Energy Solution, and PT Indonesia Battery Corporation (IBC). The investment by PT HLI Green Power is a follow-up to the Memorandum of Understanding (MoU) signed between the Ministry of Investment and Downstream Industry/BKPM and the Hyundai, LG, and IBC Consortium on July 28, 2021. In September 2023, President Joko Widodo visited PT HLI Green Power to directly review the production process and results of EV battery cells.


In its first phase, PT HLI has invested USD 1.1 billion and has a production capacity of 10 gigawatt-hours (GWh), consisting of 32.6 million battery cells capable of powering approximately 150,000 EVs. In the second phase, scheduled for completion in 2025, PT HLI plans to increase its production capacity to 20 GWh.


For further information, please contact:

Ricky Kusmayadi

Head of Communications and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

E-mail: rickykusmayadi@bkpm.go.id

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