Hyundai Motor Group and LG New Energy secured a loan of US$710 million for their joint venture battery factory in Indonesia to ensure the smooth progress of the joint venture factory construction. Hyundai Motor Group and LG New Energy secured a loan of US$710 million for a joint venture battery factory in Indonesia, which was first reported by Korean media.
According to Korean media reports, the loan of US$710 million was provided by 5 international financial institutions with a loan term of up to 10 years. The shareholding ratio provides debt security for the loan.
In addition to the three companies under the Hyundai Motor Group and LG New Energy, Seoul-based Korea Trade Insurance will also participate in providing credit guarantees for the loans. Hyundai Motor Group and LG New Energy's electric vehicle battery joint venture factory in Indonesia started construction last year with a planned investment of US$1.1 billion. The factory will be built in Karawang Industrial Park, near Jakarta, and also close to Hyundai Motor's factory.
As planned, the joint venture battery factory of Hyundai Motor Group and LG New Energy in Indonesia will be put into large-scale production in the first half of 2024, with an initial annual production capacity of 10GWh, enough to assemble 150,000 electric vehicles, and the annual production capacity will then be increased to a maximum of 30GWh.
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