Hyundai Motor and LG Chem attribute plans to set up a joint venture to produce batteries for electric cars

South Korean companies Hyundai Motor Group and LG Chem are considering setting up a joint venture in Indonesia to produce electric car batteries (EV). About Reuters it became known from the “person familiar with the issue.”

According to an informant who wished to remain anonymous, since negotiations between Hyundai Motor and LG Chem are private, the size of investments and production capacities have not yet been determined.

Automakers have recently been trying to reserve sources of battery supplies for themselves in anticipation of an increase in sales of electric vehicles due to government subsidies and quotas that limit carbon emissions.

In recent years, LG Chem, the battery manufacturer, has already established joint ventures with General Motors and Geely Automobile Holdings. In addition, it supplies batteries to automakers such as Hyundai and Tesla.