Employees of Hyundai Motor Group leave after the company's new year ceremony in Seoul, South Korea, January 2, 2020. REUTERS/Kim Hong-Ji
July 29 (Reuters) – South Korea’s Hyundai Motor Group and LG Energy Solution said on Thursday they would set up a joint venture (JV) in Indonesia to establish a battery cell plant for electric vehicles (EV), investing $1.1 billion with each owning half the business.
The JV will help Hyundai Motor Co (005380.KS) and its sister company Kia Corp (000270.KS) secure a stable supply of EV batteries at a competitive price for their battery electric vehicles.
LG Energy Solution (LGES), the wholly owned battery subsidiary of LG Chem Ltd(051910.KS), and Hyundai signed a memorandum of understanding with the Indonesian government to build the plant in the country, the companies said in a joint statement on Thursday.
The news comes as global automakers move to secure EV batteries in anticipation of a rise in sales because of government subsidies and quotas worldwide seeking to cut carbon emissions.
Construction of the plant will start in the fourth quarter of 2021 and will be completed by the first half of 2023, the companies said.
Indonesia is promoting the domestic development of EV and battery production to create a downstream industry for the country’s rich supply of lithium battery ingredient, nickel laterite ore.Reporting by Akriti Sharma in Bengaluru; Editing by Subhranshu Sahu and Gerry Doyle
Our Standards: The Thomson Reuters Trust Principles.
Amazon secured a key early win as a federal judge blocked New York from enforcing…
The Enthuse Foundation has revealed the finalists for its 7th Annual Women Founders Pitch Competition,…
The Marcus Evans 2nd Edition Model Risk Management, Canada conference taking place in Toronto, Canada…
Economists say Shanghai is strengthening its role as China’s reform engine, accelerating innovation and global…
U.S. shoppers are set to spend nearly $80 billion this Black Friday and Cyber Monday,…
Waiken has unveiled a US$450 million investment plan through 2031 to strengthen its entertainment and…