Hyundai Mobis breaks ground in Indonesia for a new battery system plant

Hyundai Mobis began construction of a new EV dedicated battery system plant in Indonesia, which it plans to have completed by the first half of next year. Hyundai Mobis intends to set Indonesia as a beachhead as the country is emerging as the heart of the ASEAN market, and catapult to being a leader of the electrification ecosystem, which include cells, battery systems, and OEMs.

The battery system plant in Indonesia will become a solid footing for Hyundai Mobis' global electrification business targeting the ASEAN market in particular. Building on the country's ample natural resources, the Indonesian government is accelerating efforts to secure leadership in the EV market. The need for EVs in ASEAN region, centered on Indonesia, is also increasing rapidly.

Hyundai Mobis will use battery cells supplied by a joint battery cell venture, HLI Green Power, and will turn them into modules that include a controller and a heat controller. They will then be supplied to global automakers as large battery systems. That is, Hyundai Mobis will play a role of an intermediary and complete the EV ecosystem.

Hyundai Mobis' plant in Indonesia will be located in Deltamas industrial complex, about 60 km southeast of the capital city of Jakarta. It is 3km from Hyundai Motor Company's plant in Indonesia and 10km from HLI Green Power, which will maximise the delivery efficiency of the battery system. For the plant, Hyundai Motor Group has invested a total of US$60 million (KRW 80 billion) on a land area of approximately 33,000m2. The battery systems will be supplied first to flagship EV models slated to be released in Southeast Asia next year.

The Indonesian Government was reportedly highly supportive with administrative matters necessary for the construction of the plant, which was in line with their policy to strengthen the local EV market and the ecosystem. They provided enthusiastic support on various fronts not only in the construction approval process, but also in the environmental assessment, logistics costs, and tax benefits.