By Alimat Aliyeva

South Korean companies Hyundai Motor and LG Energy Solutions have opened the first factory in Indonesia for the production of batteries for electric vehicles worth $ 1.1 billion, Azernews reports.

The factory will produce batteries with a total capacity of 10 GW per hour. Construction of the factory, located in the city of Karawang near Jakarta, began in 2021. Indonesia is the largest producer of nickel used in batteries.

"We have a lot of natural resources. So far, we have exported them as raw materials. Thanks to the battery factory, we will become an important global player in the electric vehicle industry," President Joko Widodo said during his speech at the plant's opening ceremony.

South Korean companies are also investing $2 billion in the construction of a second battery production line with a total capacity of 20 GWh per year. In total, Hyundai and LG Energy plan to invest $9.8 billion in the development of infrastructure for the production of electric vehicles in Indonesia.

It is worth noting that Hyundai operates an electric vehicle manufacturing plant in Indonesia with a production capacity of 250,000 units per year.