Hyundai Mobis breaks ground on new EV battery system plant in Indonesia

With the rise of the ASEAN market, Hyundai Mobis seeks to expand and develop the Indonesian plant into a long-term strategic base capable of accommodating major customers worldwide.

Autocar Pro News Desk By Autocar Pro News Desk calendar 06 Jun 2023 Views icon2273 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

Hyundai Mobis, the parts and service arm of the Hyundai Motor Group, has begun construction of a new EV dedicated battery system plant in Indonesia, which it plans to have completed by the first half of 2024.

The company states that it “intends to set Indonesia as a beachhead as the country is emerging as the heart of the ASEAN market, and catapult to being a leader of the electrification ecosystem, which include cells, battery systems, and OEMs.”

On May 31, 2023, Hyundai Mobis held a ground-breaking ceremony for the battery system plant in Bekasi, West Java (Jawa Barat) on the outskirts of Jakarta.

The battery system plant in Indonesia will become a solid footing for Hyundai Mobis' global electrification business targeting the ASEAN market in particular. Building on the country's ample natural resources, the Indonesian government is accelerating efforts to secure leadership in the EV market. The need for EVs in ASEAN region, centered on Indonesia, is also increasing rapidly.

Hyundai Mobis will use battery cells supplied by a joint battery cell venture, HLI Green Power, and will turn them into modules that include a controller and a heat controller. They will then be supplied to global automakers as large battery systems. Essentially, Hyundai Mobis will play a role of an intermediary and complete the EV ecosystem.

Hyundai Mobis' plant in Indonesia is located just 3km from Hyundai Motor Company's plant and 10km from HLI Green Power.

Logistically near Hyundai car plant

Hyundai Mobis' plant in Indonesia will be located in Deltamas industrial complex, about 60km southeast of the capital city of Jakarta. It is 3km from Hyundai Motor Company's plant in Indonesia and 10km from HLI Green Power, which will maximise the delivery efficiency of the battery system.

For the plant, Hyundai Motor Group has invested a total of US$ 60 million (Rs 495 crore) on a plant site of 33,000 square metres. The battery systems will be supplied first to flagship EV models slated to be released in Southeast Asia next year.

The Indonesian Government was reportedly highly supportive with administrative matters necessary for the construction of the plant, which was in line with their policy to strengthen the local EV market and the ecosystem. They provided enthusiastic support on various fronts not only in the construction approval process, but also in the environmental assessment, logistics costs, and tax benefits.

Oh Heung-sub, Senior Vice President of Electrification at Hyundai Mobis, thanked the Indonesian Government for their generous support in his congratulatory remarks saying, “Hyundai Mobis will become a partner for Indonesia and will play a pivotal role in establishing the EV ecosystem.”

Hyundai Mobis holds half of the stake (Hyundai Mobis 25%, Hyundai Motors 15%, Kia 10%) in Hyundai Motor Group's total investment in HLI Green Power, a joint battery cell venture currently being built near the company's local plant. With the rise of the ASEAN market, Hyundai Mobis seeks to expand and develop the Indonesian plant into a long-term strategic base capable of accommodating major customers worldwide.

Hyundai Mobis is currently producing EV components, including battery systems, not just in Korea, but also in Europe (Czech Republic, Slovakia). In October last year, the company announced a plan to invest US$ 1.3 billion by 2030 in a bid to expand the electrification production base in North America. Today, Hyundai Mobis is constructing a total of five additional electrification component plants in Alabama and Georgia, USA.

This will complete the electrification value chain that links major continents stretching from Asia (Korea and Indonesia), and Europe, to North America. This is also expected to reinforce Hyundai Mobis' capability to respond to the EV market.

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