Hyundai Welcomes Proposal for Special Incentives for EVs with Nickel Batteries

KatadataOTO – The proposal to provide more incentives for electric cars using nickel-based or Nickel Manganese Cobalt (NMC) batteries has been welcomed by Hyundai. The South Korean manufacturer revealed that it will support the Indonesian government's program.

Especially since they already have a factory to produce batteries in the country.

“Of course, we positively welcome every government initiative to accelerate vehicle electrification in Indonesia,” said Fransiscus Soerjopranoto, Chief Operating Officer of PT Hyundai Motors Indonesia (HMID) to KatadataOTO (08/01).

He also revealed that the program is in line with their efforts so far.

Photo: Hyundai

“In 2026, our focus is on healthy and sustainable growth,” he added.

Unfortunately, he did not specify which electric car would be their flagship.

It should be noted that Hyundai is not only developing electric cars but also EV batteries in the country. Currently, they have built various facilities to produce battery cells in collaboration with LG Energy Solution.

The company, named Hyundai LG Indonesia (HLI) Green Power, is located in Karawang and has become the largest battery cell factory in Southeast Asia.

The production capacity of the factory is quite large, reaching up to 120,000 battery cells per day. The resulting products will be used to meet the needs of the Hyundai Kona Electric

Interestingly, the facility is not only used for domestic needs. In fact, most of its production is used to supply the export market and is used in various Hyundai electric vehicle models.

Photo: Special

Impressively, 98 percent or about 19.7 million battery cells are sent to export markets in South Korea and India. Meanwhile, the remaining 2 percent or 375,264 are used for domestic needs.

The presence of this factory makes them the manufacturer with the highest electric car local content level (TKDN) compared to other manufacturers. The Hyundai Kona Electric, for example, has already reached 80 percent in local components.