Recently,Hyundai Motor Group and LG Energy Solution have invested up to $1.1 billion inIndonesiaThe battery factory, officially put into operation, marks a solid step forward for Indonesia in building an electric vehicle manufacturing center.

This modern battery factory located in West Java Province, Indonesia, has attracted attention from the industry since its announcement of construction in 2021. With its official launch on July 3rd, it not only became Indonesia's first foreign-funded battery factory, but also a key milestone for the Indonesian government to promote the construction of downstream supply chains in the electric vehicle manufacturing industry.

Indonesian Minister of Ocean Affairs and Investment Coordination, Luhut Binsar Pandjaitan, stated at the celebration ceremony that the annual production capacity of the factory will be sufficient to support the power demand of 50000 electric vehicles, injecting strong momentum into the electric vehicle market in Indonesia and even globally.

The Indonesian government is well aware of its huge advantage in battery raw material nickel resources, which account for half of the global metal production and are expected to continue to grow in share over the next decade. Therefore, the Indonesian government actively utilizes this advantage and attracts leading companies in the global electric vehicle industry to invest and build factories through policy measures such as tax incentives and low energy costs.

The joint venture battery factory between Hyundai and LG is a shining pearl under this strategic vision. It will not only promote the development of Indonesia's domestic battery industry, but also drive the upgrading and improvement of the entire electric vehicle industry chain.

It is worth noting that the two giants of China's electric vehicle industry, Contemporary Ampere Technology Co., Ltd. (CATL) and BYD Co., Ltd. (BYD), have also announced the establishment of production bases in Indonesia, further confirming Indonesia's enormous potential and attractiveness in the field of electric vehicles. The entry of these international giants will not only bring advanced production technology and management experience to Indonesia, but also promote local employment and economic growth, achieving a mutually beneficial and win-win development situation.

The official launch of the joint venture battery factory between Hyundai and LG is not only a fruitful result of their cooperation, but also a vivid portrayal of the coordinated development and common progress of the global electric vehicle industry. With the continuous expansion of the electric vehicle market and advances in technology, we have reason to believe that this battery factory located in Indonesia will become one of the important forces driving the development of the global electric vehicle industry.