South Korea based auto manufacturer Hyundai Motor Group (KRX: 005380) and largest South Korean chemical company LG Chem might be building an electric vehicle battery manufacturing plant in Indonesia anytime soon.
Insider sources involved with the matter revealed the two companies are almost reaching an agreement on the upcoming joint venture.
More precise details about the venture like the investment size, production size and site location were not disclosed by the source as the discussions are said to be held in private.
LG Chem has been on a partnering spree in recent times as it has entered into various partnerships over the past few years. Some of these ventures include with Chinese automaker Geely Automobile Holdings Ltd (0175.HK) and U.S based General Motors Co (GM).
Over the longest period now, LG Chem has been supplying leading EV maker Tesla Inc. (TSLA) with EV batteries.
Chairman of LG Chem, Koo Kwang-mo held a meeting with the Vice chairman of Hyundai, Euisun Chung to discuss the partnership in production of EV batteries and future technology.
“Hyundai Motor Group is collaborating with LG Chem on various projects. However, no concrete discussion has been made on a battery joint venture in Indonesia,” said Hyundai after the meeting.