According to foreign media reports, Hyundai Motor Group and LG New Energy have secured a $710 million loan for their joint venture battery plant in Indonesia to ensure the smooth progress of the joint venture’s construction.
Hyundai Motor Group and LG New Energy secured a $710 million loan for a joint venture battery plant in Indonesia, which was first reported by the Korean media.
From the Korean media reports, the $710 million loan, provided by five international financial institutions, has a term of up to 10 years, and Hyundai Motor Group’s Hyundai Motor, Kia, Hyundai Mobis and LG New Energy, will provide debt guarantees for the loan in proportion to their shareholdings.
In addition to the three Hyundai Motor Group companies and LG New Energy, Seoul-based Korea Trade Insurance Corporation, which will also participate, will provide credit guarantees for the loan.
Hyundai Motor Group and LG New Energy have started construction of an electric vehicle battery joint venture plant in Indonesia last year, with a planned investment of $1.1 billion, to be built in the Karawang Industrial Park, near Jakarta and also near Hyundai Motor’s plant.
The joint venture battery plant between Hyundai Motor Group and LG New Energy in Indonesia is scheduled to go into full-scale production in the first half of 2024, with an initial annual capacity of 10 GWh, enough for the assembly of 150,000 electric vehicles, which will then be increased to a maximum of 30 GWh per year.
