Hyundai Games On: First EV Battery Plant in SEA to Operate in April

In collaboration with LG Energy Solution (LGES), Hyundai Motor Group is set to commence operations at its battery cell and battery pack manufacturing facility for electric vehicles in Cikarang and Karawang, West Java, on April 2024. As reported by Bisnis Indonesia on Mar. 13, from the first half of 2024 onward, a range of Hyundai's electric vehicles, such as the Ioniq 5, will be utilizing locally made batteries. "This acceleration precedes our initial plan set for the second half of 2024," Fransiscus Soerjopranoto, Chief Operating Officer of PT Hyundai Motors Indonesia, stated.

With the adoption of locally made batteries, Hyundai aims to ramp up its EV production in Indonesia. Fransiscus said Hyundai's production capacity in Indonesia is poised to increase, enhancing the company's prospects to capture both the domestic and export EV markets. Over the long term, he believes that the production costs of Hyundai's EVs will decrease in tandem with local battery production. "In the initial stages of production, the impact on prices may not be significant. However, as production scales up and the plant operates longer, depreciation costs will diminish," he explained.