South Korea's Hyundai has launched the first
electric car assembly plant in Indonesia, as the Southeast Asian archipelago
looks to exploit an abundance of resources used in EV production. Indonesia is the world's largest nickel producer
and also rich in cobalt, bauxite and copper ores, key materials in the
manufacture of batteries for electric cars.
President Joko Widodo has said his government is
aiming to establish an integrated EV "ecosystem" ranging from metals
mining to battery production and car assembly. The Hyundai factory will produce the firm's newest
model the IONIQ 5, with an annual capacity of 250,000 vehicles.
"Moving forward, electric vehicles should be
the main mode of transportation," he added.
The country is targeting production of two million
electric vehicles by 2025, both cars and motorcycles. The push to electric
transportation is part of Indonesia's aim to achieve zero net emissions by
2060. To aid the development of the industry the
government has lifted import duties on EV parts.
Hyundai said in a statement it would also build a
network of charging stations and a battery production plant in collaboration
with fellow South Korean electronics multinational LG.
