Indonesia's first electric vehicle (EV) battery cell plant will expand its output capacity to 30 GWh/yr from the initial 10 GWh/yr, according to the country's investment minister Bahlil Lahadalia.
The plant is being set up by South Korean automaker Hyundai Motor and battery manufacturer LG Energy Solutions.
The plant, located on Indonesia's West Java island, is set to also be southeast Asia's first and largest battery cell plant, according to Indonesian president Joko Widodo. It began construction work in 2021 and was scheduled to begin production in early-2024. The original production capacity was set at 10 GWh/yr of nickel-cobalt-manganese-aluminum battery cells, sufficient for roughly 180,000 units of battery EVs.
But the plant could be in production by March 2024 with a potential second phase expansion that raises its capacity to a whopping 30 GWh/yr, according to Bahlil.
The potential output capacity of 30 GWh/yr overshadows the $9bn battery investment plan by a European consortium, which was announced in June and could lead to 20 GWh/yr of battery cell production in its first phase.
"So, LG (and Hyundai) will build 30 giga[watt], and this is an investment commitment that we have been talking about so far," Bahlil said on 14 September. "This is the aspiration of the president who is always directing us to build downstream activities."
The plant is part of the development of a large EV ecosystem in Indonesia, Widodo said on social media platform X after visiting the construction site on 14 September. "With the establishment of the ecosystem, it is hoped that Indonesia can enter the global supply chain of EVs."
Separately, Japanese automotive maker Mitsubishi plans to invest an additional 5.7 trillion rupiah ($371mn) to increase its EV production capacity in Indonesia to 250,000 units by 2024, according to a statement by Indonesia's industry ministry. Mitsubishi is targeting Rp12.3 trillion of capital investment in Indonesia in 2023, according to the ministry.
Indonesia has pledged to create a fully integrated EV ecosystem over the next five years, following recent successes in the nickel intermediates space. It has emerged as the world's top processed nickel supplier following a nickel ore export ban that began in 2020.
