Asian Tech Press (SEP 15) -- South Korea's LG Energy Solution (LGSE) and Hyundai Motor Group's $1.1 billion Indonesian electric vehicle battery plant held a groundbreaking ceremony on Wednesday.

The president of Indonesia, Joko Widodo, attended and spoke at the ceremony, calling the plant the first electric vehicle battery factory in Southeast Asia and a symbol of the government's commitment to developing downstream industries using its nickel resources being fulfilled.

"Indonesia has the largest nickel reserves in the world. I believe that in the next three to four years, if properly managed, Indonesia will become a major producer of nickel-based products such as batteries," Joko said.

The plant's construction is expected to be completed in the first half of 2023, and the battery mass production will start in the first half of 2024, Hyundai Motor and LGES announced in a joint statement.

According to Indonesian Investment Minister Bahlil Lahadalia, the battery plant in Indonesia's West Java province is part of LGES's $9.8 billion investment plan.

LGSE CEO Jong-hyun Kim stated that the Indonesian plant will use the company's latest technology to produce batteries to be installed in electric vehicles from Hyundai and Kia Motors.