S Korea’s Hyundai Motor, LG Chem mull EV battery JV in Indonesia

FILE PHOTO: An electric vehicle charging station is seen at the Volkswagen display during media day at the Canadian International AutoShow in Toronto, Ontario, Canada, February 14, 2019. REUTERS/Chris Helgren/File Photo

Hyundai Motor Group and LG Chem Ltd are considering establishing an electric vehicle (EV) battery manufacturing joint venture in Indonesia, a person familiar with the matter told Reuters on Tuesday.

The investment size and production capacity have not been decided, the person said, declining to be identified as discussions are private.

Global automakers are moving to secure batteries in anticipation of a rise in EV sales due to government subsidies and quotas designed to cut carbon emissions.

In recent years, LG Chem has set up ventures with General Motors Co and Geely Automobile Holdings Ltd LG Chem also supplies batteries to automakers including Hyundai and Tesla Inc.

LG Group Chairman Koo Kwang-mo met Hyundai Motor Group Executive Vice Chairman Euisun Chung on Monday to discuss cooperation in EV batteries, including future technology.

LG Chem and Hyundai Motor Group confirmed the meeting but said nothing had been decided concerning a potential venture.

“Hyundai Motor Group is collaborating with LG Chem on various projects. However, no concrete discussion has been made on a battery joint venture in Indonesia,” Hyundai said in a statement to Reuters.

A battery cell joint venture would be the first for Hyundai, viewed as a relative latecomer to the EV market. It is mounting a challenge to the dominance of Toyota Motor Corp in Southeast Asia, with a new factory in Indonesia which may produce electric vehicles.

“Indonesia is committed to promoting the EV industry, but, consumer-wise, the country’s not yet ready with charging infrastructure or consumer purchasing power,” said Eugene Investment & Securities analyst Lee Jae-il. “A battery joint venture is likely a mid- or longer-term plan.”

Indonesia’s Coordinating Ministry of Maritime and Investment Affairs has heard of discussions between Hyundai Motor Group and LG Chem, said spokesman Jodi Mahardi, adding the companies have met with the government but have not shared further details.

“Hyundai has taken LG to meet a number of domestic companies to explore a potential partnership for EV battery production,” he said.

Reuters

 

 

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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