Hyundai Mobis begins construction of EV battery system plant in Indonesia

Hyundai Mobis, an automotive component manufacturer, has initiated the construction of a new electric vehicle (EV) dedicated battery system plant in Indonesia.

The company’s aim is to establish itself as a leader in the ASEAN market’s electrification ecosystem. Hyundai Mobis plans to complete the plant by the first half of next year, using Indonesia as a strategic beachhead due to the country’s emergence as a prominent player in the region.

The groundbreaking ceremony for the battery system plant took place in Bekasi, West Java, on the outskirts of Jakarta. The event saw participation from approximately 150 attendees, including Mochamad Ridwan Kamil, Governor of West Java Province, Ambassador of the Republic of Korea Lee Sang-deok, Oh Heung-sub, Senior Vice President of Electrification at Hyundai Mobis, Indonesian government officials, industry leaders, and local journalists.

The plant, which will focus on EV battery systems, is expected to contribute significantly to Hyundai Mobis’ global electrification business, specifically targeting the ASEAN market. Indonesia, known for its abundant natural resources, is actively promoting efforts to secure a leading position in the EV market. With the demand for EVs in the ASEAN region, particularly in Indonesia, rapidly increasing, Hyundai Mobis views this expansion as an opportunity to capture the market’s growth potential.

To produce the battery systems, Hyundai Mobis will rely on battery cells supplied by HLI Green Power, a joint battery cell venture. The cells will be transformed into modules, including controllers and heat controllers. These modules will be supplied as large battery systems to global automakers. By playing an intermediary role in the EV ecosystem, Hyundai Mobis aims to facilitate the development and integration of electric vehicles.

Hyundai Mobis breaks ground on EV battery system plant in Indonesia. Photo courtesy of Hyundai Mobis/PRNewswire.

Strategically situated in the Deltamas industrial complex, approximately 60 km southeast of Jakarta, the Hyundai Mobis plant will be located just 3 km away from Hyundai Motor Company’s plant in Indonesia and 10 km from HLI Green Power. This proximity is expected to enhance the efficiency of battery system deliveries.

The project has received a total investment of $60 million (KRW 80 billion) from Hyundai Motor Group. The plant, covering an area of around 33,000 square meters, will initially supply battery systems for flagship EV models slated for release in Southeast Asia next year.

Hyundai Mobis holds a 25% stake in HLI Green Power, a joint battery cell venture, with Hyundai Motors and Kia holding 15% and 10%, respectively. As the ASEAN market continues to grow, Hyundai Mobis envisions expanding and developing the Indonesian plant into a long-term strategic base capable of accommodating major customers worldwide.

In addition to South Korea, Hyundai Mobis already produces EV components, including battery systems, in Europe, specifically in the Czech Republic and Slovakia. Last year, the company unveiled plans to invest $1.3 billion by 2030 to expand its electrification production base in North America. Currently, Hyundai Mobis is constructing five additional electrification component plants in Alabama and Georgia, USA.