LG Group Chairman Koo Kwang-mo visited Indonesia to review operations at HLI Green Power, a joint venture between LG Energy Solution (LGES) and Hyundai Motor Group.

The facility, located in Karawang, West Java Province, is dedicated to electric vehicle (EV) battery production.

During his visit, Koo examined the production line, which includes electrode and assembly processes.

He encouraged employees to improve the company’s global competitiveness in the EV battery sector. This trip marks Koo’s first visit to Indonesia since September 2023.

The visit coincides with LGES’s plans to invest an additional US$1.7 billion in the joint venture to boost production capacity.

HLI Green Power began mass production in April 2023 and currently produces 10 gigawatt-hours of batteries annually. This output is enough to power about 150,000 EVs.

🔗 Source: The Korea Times

🧠 Food for thought

1️⃣ Indonesia’s strategic nickel reserves position it as a critical hub in global EV supply chains

LG’s continued investment in Indonesia reflects the country’s strategic importance as the world’s largest nickel producer, a critical mineral for EV batteries.

Indonesia has leveraged this natural advantage by implementing policies that restrict the export of raw nickel ore since 2020, effectively encouraging battery manufacturers to establish local production facilities to access these resources 1.

The country’s approach has successfully attracted major players like LG and Hyundai, who began mass production at their joint venture in 2023, with a capacity to power approximately 150,000 EVs annually.

This aligns with a broader trend of battery manufacturers seeking to secure stable supply chains, with Indonesia becoming an alternative to China’s dominance in battery manufacturing, which currently holds 59% of global market share compared to just 13% each for the EU and USA 2.

The additional $1.7 billion investment by LGES in the HLI joint venture, despite withdrawing from the larger Grand Package project, signals a strategic focus on battery cell manufacturing rather than the entire value chain.

2️⃣ Battery manufacturers adjusting strategies amid global EV market deceleration

LG’s recalibration of its Indonesian investments reflects broader industry adjustments to a significant slowdown in EV adoption rates globally.