Hyundai opened the first EV battery cell plant in Indonesia with LG Energy Solution as it builds out its global supply chain. The plant will supply cells for over 150,000 competitively-priced Hyundai and Kia EVs, starting with the new Kona Electric.
In March 2021, Hyundai teamed up with LG to build a new EV battery cell plant near the capital of Indonesia.
Hyundai and LG invested $1.1 billion for a 50/50 stake in the factory. The partnership, “HLI Green Power,” will secure a “steady supply of EV batteries at a competitive price for upcoming BEVs,” according to Hyundai.
As part of its planned 2024 SOP, the plant opened on Wednesday, a major milestone for Indonesia and Hyundai.
The plant has 10 GWh annual EV battery cell capacity, which is enough to power over 150,000 electric vehicles. Hyundai also announced it will begin mass production of the new Kona Electric in the country. The new Kona will be the first EV powered by the new cells.
After starting trial production in the second half of 2023, the plant has been producing battery cells since Q2 2024.
Hyundai opens new battery cell plant for low-cost EVs
The new cells will be installed in various Hyundai and Kia models, starting with the new Kona Electric. The new Kona is the second EV produced at Hyundai’s Indonesian plant, following the IONIQ 5.
With long-range and fast charging capabilities at an affordable price, Hyundai said the strategy is to “foster the Kona Electric as Indonesia’s representative electric vehicle.”
Indonesia holds massive potential for EVs. It has the world’s largest nickel reserve and is the world’s fourth most populated country. In addition, Indonesia aims to build 600,000 EVs annually by 2026 as part of its plan to achieve carbon neutrality.
Electric cars only account for about 2% of Indonesia’s auto market but are expected to reach a double-digit share by 2030.
Hyundai expects competition from low-cost Chinese EV makers like BYD to intensify, making the plant a key part of its strategy.
Hyundai unveiled its low-cost Inster EV (Casper Electric in Korea) for Europe last week, which will start at under $27,000 (25,000 euros). Meanwhile, Kia’s new EV3, starting at $30,700 (KRW 42.08 million), has already secured over 10,000 reservations in Korea.
In the US, Hyundai’s EV sales hit a new record in Q2. Hyundai’s IONIQ 5 continued its hot streak, with 18,728 models sold in the first half of 2024, up 37% compared to last year.
Although Hyundai is working to produce low-cost EVs in Indonesia, its EVs are already some of the most affordable and fuel-efficient in the US.
Hyundai’s IONIQ 5 is now more affordable to lease in the US than America’s cheapest car. Starting at just $17,820, the 2024 Nissan Versa is the cheapest car in the US, but the IONIQ 5 is less to lease, starting at $229 per month. And that’s with up to 303 miles range.
If you’re in the market for a new EV, there’s never been a better time to buy. You can use our links below to find deals on Hyundai’s EVs at a dealer near you.