LG Energy Solution will invest US$9.8 billion in Indonesia for its battery factory there.
According to Reuters, Indonesia Investment Coordinating Board said on Wednesday that the country signed a US$9.8 billion MOU with LG.
The investment will be in electric car supply chain and collaboration with Hyundai Motor Group, the board said.
BKPM also said that Indonesia will be the first control to encompass the whole supply chain for electric vehicles from material mining to electric vehicle production.
Earlier this month, LG signed a MOU with BKPM for collaboration in battery business. The South Korean company said the MOU was non-binding and declined to comment on specifics at the time.
LG Energy Solution is expected to start specific discussion on nickel miming and battery production with Indonesia soon. Battery produced at the country will likely be supplied to Hyundai Motor Group.
Indonesia has a large nickel reserve. This makes it advantageous to secure cathode materials. Hyundai has said it plans to make a factory that can produce 250,000 cars a year in the country.