On July 3, 2024, Indonesia inaugurated Southeast Asia's pioneering electric vehicle battery manufacturing plant, marking a significant milestone for the regional automotive industry. Nestled in Karawang, West Java Province, the facility is owned by HLI Green Power and stands as a beacon of innovation, leveraging Indonesia’s vast nickel reserves—the largest globally—and its position as the sixth-largest producer of bauxite.
This state-of-the-art facility is a result of a strategic joint venture between Indonesia Battery Corporation, South Korean automaker Hyundai, and renowned battery manufacturer LG Energy Solution. The initiative underscores Indonesia's ambition to become a key player in the electric vehicle sector, utilizing its rich natural resources to drive the green energy revolution. The initial $1 billion investment will yield the capacity to produce 10 GWh of battery cells, sufficient to power approximately 150,000 electric vehicles, with plans to double this capacity to 20 GWh in the future.
During the inauguration, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, emphasized Indonesia’s readiness to lead the global electric vehicle supply chain. He highlighted that this ambitious project extends beyond national borders, fostering an inclusive ecosystem that values international collaboration aimed at reducing carbon emissions and enhancing global air quality and living standards.
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Indonesia has implemented stringent trade restrictions on its critical resources. The country banned nickel exports in 2020 and followed with a prohibition on bauxite exports in 2023. Although Indonesia intended to ban copper concentrate exports starting June 1, the enforcement date has been deferred to December 31, 2024. These moves reflect Indonesia’s strategy to maximize the value of its mineral wealth domestically, further reinforcing its position in the global supply chain for electric vehicle batteries.
