Hyundai-LG Consortium Expands Indonesia Battery Cell Plant to 20 GWh
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JAKARTA, investortrust.id – South Korea’s leading battery makers Hyundai and LG Energy Solution have committed to expanding their electric vehicle battery cell production capacity in Indonesia to 20 gigawatt hours (GWh) this year, reaffirming their long-term investment in Southeast Asia’s largest economy.
The expansion plan was confirmed by Rosan Perkasa Roeslani, Indonesia’s Minister of Investment and Head of the Investment Coordinating Board, during the inauguration of South Korean chemical firm PT Dongsung Chemical’s global polyurethane production hub in Karawang, West Java, on Wednesday, April 30, 2025. The joint venture between Hyundai and LG, known as PT HLI Green Power, will double its existing capacity from 10 GWh, with the plant located in the Karawang industrial zone.
"I just came from Hyundai’s HLI Green Power site, which was rumored to have stalled investment. That’s not true—construction is progressing, and phase two of the expansion has already started," Rosan said during the event.
The announcement comes amid market speculation that LG might be scaling back its participation in Indonesia’s battery ecosystem. Rosan clarified that LG remains committed to its partnership with Hyundai, emphasizing that HLI Green Power is the fourth joint venture under Indonesia’s flagship EV battery development program.
HLI Green Power’s Karawang facility is one of only five battery production sites operated by LG Energy Solution worldwide. Built on 319,000 square meters of land, the plant initially received Rp 13.5 trillion ($850 million) in investment when it launched in 2021, and it has been operational since July 2024. The facility’s current capacity of 10 GWh is sufficient to power approximately 150,000 electric vehicles annually.
"The second phase will double the production volume. From 10 GWh today, it will increase to 20 GWh. That means the investment will also double," Rosan explained.
The second-phase construction has commenced with land clearing activities on a plot even larger than that used in the initial phase. According to Rosan, the upcoming expansion involves an estimated capital injection of $2.1 billion, or around Rp 34.85 trillion, surpassing the previous phase's investment of $1.1 billion (Rp 18.46 trillion).
"I saw it myself—the land is already being leveled. Everything is moving forward," Rosan said, adding that the expanded plant will employ close to 1,000 workers.
The move is expected to solidify Indonesia’s ambition to become a key hub in the global electric vehicle supply chain, leveraging its vast reserves of nickel and other key minerals required for lithium-ion battery production.