West Java Becomes Southeast Asia’s Hub for EV Battery Production
West Java has officially become the home of Southeast Asia's largest and first electric vehicle (EV) battery cell factory. President Joko Widodo inaugurated the PT Hyundai LG Indonesia (HLI) Green Power plant located in Karawang New Industry City (KNIC), Teluk Jambe Barat, Karawang Regency, on July 3.
Before the inauguration, President Widodo toured the HLI Green Power factory and signed the hood of the first locally-produced battery-powered Kona Electric car. Accompanying him on the visit was the Republic of Korea's Minister of Trade, Inkyo Cheong.
The battery cell factory, covering an area of 330,000 square meters, has the capacity to produce lithium-ion battery cells with a total capacity of 10 GWh per year, sufficient to supply 150,000 electric vehicle batteries. The first car to utilize these locally-manufactured batteries is the latest Hyundai Kona Electric, which will soon be available in Indonesia, priced at around IDR500 million ($31,000).
The initial investment in the plant is valued at $1.2 billion. The establishment of this battery cell factory is expected to bring numerous benefits to West Java, including increased regional revenue through investment taxes, job creation to reduce unemployment, and enhanced competitiveness of the region.
Investment trends in West Java continue to remain positive, with the region hosting 14,000 existing companies with their investments. In 2024, West Java significantly contributed to national investment growth, valued at around IDR210 trillion ($13 billion), encompassing both foreign and domestic investments.
