Hyundai’s new electric car factory outside Jakarta South Korean automaker Hyundai Motor opened its first Southeast Asian manufacturing plant in Indonesia on March 16, which will produce Indonesia’s first locally assembled electric vehicle. The launch is part of Indonesian President Joko Widodo’s goal of developing a complete electric vehicle supply chain using the country’s mineral resources, mainly nickel ore. The automaker said the plant, located in the Deltamas Industrial Park, 40 kilometers east of the capital Jakarta, will begin mass production of Hyundai’s flagship electric vehicle, the Ioniq 5. It plans to invest 1.92…
South Korean automaker Hyundai Motor opened its first Southeast Asian manufacturing plant in Indonesia on March 16, which will produce Indonesia’s first locally assembled electric vehicle. The launch is part of Indonesian President Joko Widodo’s goal of developing a complete electric vehicle supply chain using the country’s mineral resources, mainly nickel ore.
The automaker said the plant, located in the Deltamas Industrial Park, 40 kilometers east of the capital Jakarta, will begin mass production of Hyundai’s flagship electric vehicle, the Ioniq 5. It plans to invest 1.92 trillion won ($1.56 billion) in the plant to produce an initial capacity of 150,000 vehicles a year, which will later be expanded to 250,000 vehicles a year.
Incentives for EV Investors
Widodo said at the factory inauguration that the Indonesian government is offering incentives and “removing red tape” to boost investment in electric vehicle development.
“Our country has vast mineral resources that can be used to develop electric vehicles,” he said, noting that “we need to be a significant player in the global electric vehicle supply chain.”
In addition to nickel, Indonesia also mines cobalt and has large deposits of bauxite and copper, which can also be used to produce electric vehicles, Jokowi said.
Car battery plant to open in 2024
Hyundai noted that the new plant will be connected to a nearby Hyundai-LG Energy Solutions joint venture battery plant, which is scheduled to start production in 2024. By then, all electric vehicles produced in Indonesia will use locally-made batteries and other key components.
In Indonesia, the automaker said it will also utilize 100 dealers in 40 cities across the country and conduct training events with local partners to exchange knowledge and technology.
Vehicles will be sold under a build-to-order program that allows customers to select product specifications when ordering. Local dealers also plan to launch a click-to-buy online platform service.
