Hyundai Motor Group and LG Energy Solution said on Wednesday that they have started construction of their joint battery factory in Indonesia.
The factory will be built at Karawang New Industry City on 330,000 meter-square of land.
It will have an annual production capacity of 10GWh.
The pair is aiming to complete the factory by the first half of 2023, with production starting during some time in the first half of 2024.
They will also expand the factory’s capacity by up to 30GWh if needed.
The factory will manufacture nickel, cobalt, manganese and aluminum (NCMA) batteries.
The pair each owns 50% shares in the joint factory company and will spend US$1.1 billion.
Indonesia announced incentives including tax benefits for electric vehicles in 2019, and is fostering the industry there.
