Hyundai Motor launched a new auto plant on Wednesday that will produce the first locally assembled electric vehicle in Indonesia.
The project is part of President Joko Widodo’s goal of developing a full EV supply chain.
At the plant’s inauguration on Wednesday, Widodo said the government was providing incentives and had removed the red tape to try to increase investment in EV development.
“We need to be an important player in the global supply chain of electric cars,” Widodo said.
“Our country has large mineral resources that can be used for the development of electric cars,” he added.
Indonesia is a significant producer of nickel ore, an important material for EV batteries.
The country also produces cobalt and has significant deposits of bauxite and copper ores, which can be used for EV production, Widodo said.
By 2024, all EVs produced in Indonesia will utilize locally made batteries and other major components, he added.
The automaker’s chairman Euisin Chung said the new plant would also be associated with a Hyundai-LG joint venture battery plant, which is set to start in 2024.
LG Energy Solution (LGES) and Hyundai were building the $1.1 billion EV battery plant in September, which at its full capacity is expected to produce about 10 gigawatt hours of battery cell power.