'The Future of the Electric Vehicle Ecosystem' Opened by Hyundai Motor Company

'Ecosystem Completion' Event in Indonesia
From Raw Material Supply to Electric Vehicle Production and Sales
"Building an Ecosystem Not Only in Asia but Globally"

Hyundai Motor Group's battery cell production subsidiary in Indonesia, HLI Green Power, a joint venture with LG Energy Solution, has officially started operations. Along with this, the electric vehicle Kona will soon enter mass production. This is Hyundai Motor's first case of establishing an integrated production and sales system overseas, from battery raw material procurement to the final finished electric vehicle. It is also analyzed to be significant in terms of beginning to reduce dependence on China in the secondary battery raw material supply chain.

On the 3rd, Hyundai Motor Group held an event titled 'Completion of the Indonesian Electric Vehicle Ecosystem' at HLI Green Power in the Karawang New Industrial Complex, Indonesia. About 300 people attended the event, including Indonesian President Joko Widodo, local government and regional officials, and Korean government officials such as Jeong In-gyo, Director General of Trade Negotiations. They celebrated the completion of the recently started mass production battery joint factory and the mass production of the new Kona electric vehicle equipped with locally produced batteries.

Employees at Hyundai Motor Indonesia factory (HMMI) are attaching the battery to the underbody of the new Kona Electric during pilot production.
[Photo by Hyundai Motor Group]

At the event, Chung Eui-sun, Chairman of Hyundai Motor Group, emphasized, "This is the fruit of cooperation achieved together by Hyundai Motor Group and Indonesia and a symbol of a strong partnership," adding, "It means that we are creating the future of the electric vehicle ecosystem not only in Asia but globally." Jeong In-gyo, Director General of Trade Negotiations, said, "This place, the cradle of electric vehicle cooperation between the two countries, will lead the development of Indonesia's electric vehicle industry."

Hyundai Motor Group's establishment of an electric vehicle ecosystem in Indonesia is highly significant. Indonesia has one of the world's largest reserves of nickel, a key battery material, and its status is gradually rising in the electrification transition process. Especially in the case of batteries, a core component, China holds global dominance, so Western countries such as the United States and Europe consider the ASEAN region, including Indonesia, important to reduce dependence on China.

Hyundai's exclusive electric vehicle Ioniq 5 produced in Indonesia
[Photo by Hyundai Motor Group]

Additionally, Indonesia forms the largest finished vehicle market in the ASEAN region, based on a population exceeding 200 million. The ASEAN market, including Indonesia, has been led by Japanese automakers establishing local production bases. However, existing factories mainly produce internal combustion engine vehicles. Hyundai Motor Group is the first automaker to establish an ecosystem covering the entire electric vehicle value chain locally. The Indonesian government is actively promoting the battery and electric vehicle industry as part of carbon emission reduction and new industry development, and is actively seeking foreign investment.

President Widodo demonstrated assembling battery cells produced locally into modules and packs on-site. He also signed the first new Kona electric vehicle produced at the local factory. Previously, President Widodo left a commemorative signature on a Kona electric vehicle at the Indonesian investment agreement ceremony held at the Ulsan plant in 2019.

Indonesian President Joko Widodo is signing the first new Kona electric vehicle equipped with battery cells produced by HLI Green Power. From the right in the photo are Jeong In-kyo, Director General for Trade Negotiations, Chung Eui-sun, Chairman of Hyundai Motor Group, and Indonesian President Joko Widodo.
[Photo by Hyundai Motor Group]