Hyundai has launched its first-ever EV battery cell manufacturing facility in Indonesia in collaboration with LG Energy Solution, as part of its efforts to fortify its global supply chain. South Korea-based SK Innovation will supply cells to power over 150,000 competitively priced Hyundai and Kia electric vehicles, commencing with the launch of the all-new Kona Electric.
In March 2021, Hyundai collaborated with LG to establish a state-of-the-art EV battery cell manufacturing facility near Jakarta, the capital city of Indonesia.
Hyundai and LG jointly invested $1.1 billion to secure equal ownership stakes in the manufacturing facility. Hyundai has announced that its partnership, HLI Inexperienced Power, will secure a steady supply of electric vehicle (EV) batteries at a competitive price for future battery-electric vehicles (BEVs).
The Indonesian Hyundai plant officially began operations on a Wednesday, marking a momentous occasion for both countries involved.
The company’s plant boasts an impressive 10 GWh of annual capacity for producing electric vehicle (EV) battery cells, enabling the manufacture of enough units to equip over 150,000 electric cars. Hyundai has announced that it will commence large-scale production of its latest Kona Electric model in the country. The all-new Kona will pioneer the brand’s entry into the electric vehicle market, marking its maiden voyage on the road with innovative battery technology.
The company initiated trial production of battery cells in the latter half of 2023 and has successfully transitioned to full-scale manufacturing as of Q2 2024.
South Korean automaker Hyundai has launched a state-of-the-art battery cell manufacturing facility to cater to the growing demand for affordable electric vehicles.
The new cells will initially be introduced in multiple Hyundai and Kia models, starting with the brand-new Kona Electric. Hyundai’s Indonesian plant has just launched its second electric vehicle, the brand-new Kona, following the successful production of the IONIQ 5.
Hyundai claims its strategy is to position the Kona Electric as Indonesia’s go-to electric vehicle by offering long-range and rapid charging capabilities at a reasonable price.
With a vast archipelago spanning over 17,000 islands, Indonesia presents a substantial opportunity for electric vehicles (EVs). Indonesia boasts the world’s largest nickel reserves and is home to a population of over 273 million people, ranking as the planet’s fourth most populous nation. By 2026, Indonesia aims to manufacture 600,000 electric vehicles annually as it pursues its goal of achieving carbon neutrality.
While electrical vehicles currently hold a mere 2% market share in Indonesia, predictions suggest they will surge to a double-digit percentage by 2030?
As Hyundai anticipates intensified competition from budget-friendly Chinese electric vehicle manufacturers such as BYD, it has strategically positioned the plant at the forefront of its strategy. BYD has successfully delivered its inaugural shipment of 1,000 vehicles to Indonesia, marking a significant milestone in the company’s international expansion.
Hyundai’s IONIQ 5 (left) and IONIQ 6 (right) refuel at a Tesla Supercharger station.
Hyundai has launched its affordable Inster EV, also known as the Casper Electric in South Korea, on the European market, with a starting price of around $27,000 (25,000 euros). Meanwhile, Kia’s latest EV3 model, priced from $30,700 (KRW 42.08 million), has attracted more than 10,000 pre-orders in its home market of Korea.
Hyundai’s electric vehicle (EV) gross sales reached an all-time high within the United States during the second quarter.
Hyundai’s Ioniq 5 maintained its impressive momentum, as 18,728 units were sold globally during the first half of 2024, representing a 37 percent increase compared to last year.
Hyundai has been striving to offer affordable electric vehicles (EVs) in Indonesia, but it’s worth noting that their EVs have already earned a reputation for being among the most cost-effective and fuel-efficient options available in the United States.
Hyundai’s IONIQ 5 has become even more affordably priced for leasing in the US, undercutting America’s cheapest car on offer. Starting at an unbeatable price of just $17,820, the 2024 Nissan Versa takes its place as the most affordable car available in the US market. Meanwhile, Hyundai’s IONIQ 5 offers an even more attractive leasing option, with a starting cost of only $229 per month. The distance between cities can differ by as much as 303 miles.
