The plant is part of an LGES $2.4 billion commitment to build a factory in the Batang Industrial Park to produce 220,000 tonnes of precursor and 42,000 tonnes of cathode per year.

These are the main raw materials for the firm’s battery cell plant in Karawang, West Java, operated by PT Hyundai LG Industry (HLI) Green Power, a joint venture between LGES and Hyundai Motor Group.

Toto Nugroho, the director of Indonesia Battery Corporation (IBC), said he expected construction of the battery cathode production facility to begin in January 2024.

“LG will establish production facilities from battery cells to cathodes. For cathodes, we [IBC] are negotiating with them to invest in Batang,” he said in Jakarta on Monday.

The negotiations are taking place as HLI Green Power nears the completion of its 10 gigawatt-hour (GWh) EV battery cell factory slated to begin production in February.

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Toto went on to say that the battery giant would increase the capacity of its Karawang factory by 20 GWh.

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