KARAWANG – Karawang New Industry City (KNIC) welcomes the development PT HKML Battery Indonesia, the first electric vehicle battery (EV battery) plant in SEA by the consortium of LG Energy Solution, Hyundai Mobis, Hyundai Motor Company, and KIA Corporation. The plant will be built on a 319.000-square-meter land inside the Karawang New Industry City that will have a capacity of 10 GWh for the first phase.
KNIC will also prepare one-stop solution facilities for its tenant. This construction will be the first EV Battery plant in Indonesia as well as in South-East Asia. During the groundbreaking ceremony at Karawang New Industry City on Wednesday (15/9), Minister of Investment/BKPM Bahlil Lahadalia said that the total investment value from LG Energy Solution for the integrated electric vehicle battery cell industry reached USD 9.8 billion or equal to IDR 142 trillion, where USD 1.1 billion will be used for EV battery plant development at KNIC.
This partnership will also involve a battery SOE consortium PT Industri Battery Indonesia (IBC) throughout its supply chain as well as micro, small and medium enterprises (MSMEs) according to the Job Creation Law. While the plant provides job opportunities, it is also expected that local human resources will be the priority. As the property host, KNIC is responsible for providing green areas as well as innovative solutions and services to optimize productivity and competitive advantages of the EV battery plant.
One of the features provided by KNIC are its waste and water management facilities with a total capacity of 21,500 m3 per day for waste and 12,000 m3 per day for water treatment, retention pond, and drainage system to accommodate heavy rainfall. KNIC ensures its supports to be align with the government’s effort to strengthen economic development towards sustainability or a “green economy”. “We appreciate LG Energy Solution investment at KNIC in where they will build their first electric vehicle battery plant in Southeast Asia.
Also, as currently, the majority of industry in KNIC are building materials, daily product, and food industry, the presence of PT HKML Battery Indonesia will strengthen our portfolio as automobile industrial area. With KNIC's innovative environment that focuses on industrial development, we hope the company can achieve optimal operational efficiency and business growth here.” said the representative of KNIC. Following this electric vehicle battery plant, KNIC is targeting battery supply chain industry and to develop 195 ha to get ready to welcome more industry players to the estate.
