SEOUL-- Hyundai Motor Group and LG Energy Solution (LGES) Ltd. have secured US$710 million in loans and guarantees for their joint project to build a battery cell plant in Indonesia, the companies said Monday.
Hyundai and LG will receive the funds from five different international financial firms with a 10-year loan period and will gradually take out the loan as the project progresses, the companies said.
Hyundai Motor Co., Kia Corp., Hyundai Mobis Co. and LGES will provide debt guarantees proportionate to the value of their stakes in the project. The Korea Trade Insurance Corp., a Seoul-based trade insurer, will provide credit guarantees.
South Korea's leading auto group and the country's top battery producer formed a $1.1 billion joint venture to build an electric vehicle (EV) battery cell plant in a new industrial complex in the Karawang region, east of Jakarta, with a goal to enter mass production in the first half of 2024.
The joint plant will initially produce 10 gigawatt hours worth of battery cells per year, enough to run more than 150,000 EVs and later increase its capacity to as much as 30 gigawatt hours.
Source: Yonhap News Agency