South Korea's Hyundai, LG Chem considering EV battery JV in Indonesia: Source1 min read . Updated: 23 Jun 2020, 09:49 AM IST
Global automakers are moving towards securing electric vehicle batteries in anticipation of a rise in EV sales due to government subsidies and quotas worldwide, seeking to cut carbon emissions.
South Korea's Hyundai Motor Group and LG Chem Ltd are considering establishing an electric vehicle (EV) battery cell manufacturing joint venture in Indonesia, a person with direct knowledge of the matter told Reuters on Tuesday.
The size of investment or capacity have not been decided, said the person, declining to be identified as discussions are private.
The news comes as global automakers move to secure electric vehicle batteries in anticipation of a rise in EV sales due to government subsidies and quotas worldwide seeking to cut carbon emissions.
In recent years, battery maker LG Chem has set up separate ventures with both General Motors Co and Geely Automobile Holdings Ltd.
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 battery technology.
Both LG Chem and Hyundai Motor Group confirmed the meeting but said nothing has been decided concerning a potential venture.
LG Group's biggest companies include LG Chem and LG Electronics Inc. Hyundai Motor Group includes automakers Hyundai Motor Co and Kia Motors Corp as well as auto parts maker Hyundai Mobis Co Ltd .
(Also read: Hyundai and Kia Motors turn up EV efficiency with new heat pump technology)
A battery cell joint venture would be the first for Hyundai, widely viewed as a relative latecomer to the EV market. The automaker is considering starting production of EVs tailored to Southeast Asia at a new plant in Indonesia, the region's second-largest car production hub after Thailand.
Indonesia is promoting the domestic development of EV and battery production to create a downstream industry for the country's rich supply of lithium battery ingredient, nickel laterite ore.
This story has been published from a wire agency feed without modifications to the text.