LG Energy Solution and Hyundai Motor have formed a joint venture in Indonesia to manufacture batteries there, TheElec has confirmed.
The pair had agreed to form a battery cell joint venture last year in July.
LG Energy Solution owns 50% shares and Hyundai Motor 25% shares of the venture, called HLI Green Power, sources said.
HLI Green Power will be operating a battery cell factory with a capacity of 10GWh per year that is expected to start operations in 2024, the sources said.
The pair is planning to expand the capacity of the plant to 30GWh per year, depending on demand, they added.
LG Energy Solution has been collaborating with the Indonesian government in a project it calls Grand Package, in which the South Korean battery maker is attempting to build an ecosystem that encompasses the whole value chain of battery production, including nickel mining, smelting, battery production, back-end process, and electric vehicle. The project is worth around 10 trillion won.
Other LG affiliates such as LG Chem and LX International are also part of the Grand Package project.