LG Energy Solution and the Indonesian government has signed a non-binding MOU on Friday.
LG Energy Solution CEO Kim Jong-hyun and Bahlil Lahadalia, chairman of Indonesia Investment Coordinating Board (BKPM), held a singing ceremony for the agreement in Seoul.
A LG spokesperson said specifics of the agreement was yet to be finalized.
The company will likely build a factory in the Southeast Asian country for nickel mining and electric vehicle battery production.
Battery produced will likely be supplied to Hyundai Motor’s factory there.
Indonesia has a large nickel reserve, which is advantageous to secure materials for cathode. Hyundai is planning to build a car factory that can produce 250,000 vehicles a year.