Hyundai, Indonesia discuss hydrogen, EV cooperation

Hyundai Motor Group Chairman Chung Euisun has discussed cooperation on hydrogen-fueled cars and electric vehicles (EVs) with the Indonesian economy minister, as the automotive group plans to double its production in the Southeast Asian country to spur its foray into the region.

Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto said in a Facebook post on Tuesday that he had met in Seoul with Chung, Hyundai Motor Chief Executive Chang Jae-hoon and the automotive group’s advisor Sung Kim.

The minister said that Hyundai has been participating in various hydrogen projects in Indonesia, adding that the Indonesian government is building an EV development road map that includes offering various incentives.

Hyundai is the No. 1 EV seller in Indonesia.
 

Since completing an auto plant in Indonesia in 2022 with an annual production capacity of 125,000 units, Hyundai has been churning out the multi-purpose vehicle Stargazer, compact crossover Creta, mid-sized SUV Santa Fe and all-electric midsize crossover IONIQ 5 from the plant in Cikarang, West Java, Indonesia.

It plans to double its production capacity at the factory to turn it into a major manufacturing base in Southeast Asia.

The South Korean carmaker also started producing battery cells in Karawang New Industry City, near Jakarta, together with LG Energy Solution Ltd.

The two companies will pour a combined $1.1 billion into that plant, which has an annual production capacity of 10 gigawatt hours.
 
The battery cells produced at the plant are being installed in EVs made at Hyundai’s Cikarang plant.

In addition, Hyundai Motor has partnered with Indonesia to build a smart city in Nusantara, to which the country plans to move its capital.

In 2022, Hyundai Motor signed an MOU with the Nusantara Capital City Authority to establish an advanced air mobility system, which is expected to ease traffic congestion in the new capital city.

Chung has visited Indonesia four times since taking the helm of Hyundai Motor Group in October 2020.

His latest trip there was last September as part of the business delegation of Korean President Yoon Suk Yeol's state visit to the country.

At the summit meeting between the two countries, they affirmed their commitment to expand the scope of business cooperation in various sectors including EVs, batteries, agricultural machinery, petrochemicals and steel.

Write to Jae-Fu Kim at hu@hankyung.com
Yeonhee Kim edited this article