JAKARTA, KOMPAS.com – South Korea’s Hyundai in Indonesia is expanding beyond car manufacturing as it is in talks with LG Chem Ltd to invest in car battery production in the Southeast Asian country.
The joint venture would see two of South Korea’s business giants produce car batteries for electric cars in Indonesia, according to sources at Reuters.
The production capacity of the proposed car battery manufacturing is yet to be revealed.
With a growing number of consumers seeking eco-friendly alternatives to their lifestyle, new opportunities have arisen for the global automotive industry.
There is also an expanding list of countries providing generous subsidies for companies that can achieve reduced carbon emissions.
LG Chem has a longstanding history in electric car battery production. Its clients include General Motors, Geely Automobile, Tesla, Hyundai, and a slew of other car producers.
Head of LG Group Koo Kwang-mo confirmed that a meeting took place with the Executive Vice Chairman of Hyundai Motor, Euisun Chung.
Both parties discussed a potential partnership in EV battery production including battery technology for the future.
However, both Hyundai and LG executives did not yet reach a decision in their potential business plans.
“Hyundai Motor Group has collaborated with LG Chem in various projects. At this moment, there has yet to be any concrete discussions regarding a joint venture for car battery production in Indonesia,” said a Hyundai representative to Reuters.
Should the joint venture between the two South Korean giants take place, it will be the first attempt for Hyundai in car battery production.
Plans to start car battery production in Indonesia is quite strategic considering Hyundai started construction of a factory in the archipelagic nation.
This is Hyundai’s effort to challenge Toyota’s dominating presence in Indonesia.