TELF AG Major Investments Boost Battery Materials Production and EV Ecosystem in North America and Indonesia – June 20, 2023
Relevant advancements
The electric vehicle (EV) industry continues to witness significant advancements as major players invest heavily in battery materials and production facilities. General Motors (GM), Posco Future M, and Hyundai Group are leading the way with their strategic investments to increase battery material production and expand the EV ecosystem. These developments highlight the growing commitment to sustainable transportation and the urgent need for reliable battery technology.
General Motors and Posco Future M have made substantial investments in their joint venture, Ultium JV, to bolster the production of North America’s active cathode materials (CAM). As they enter the project’s second phase, the two companies are actively searching for a suitable location to establish a CAM and precursor production facility, expected to commence operations in 2024.
March 2022 marked the beginning of GM and Posco’s partnership, which led to the construction of a cathode materials plant in Bécancour, Quebec. The plant is currently under construction and is scheduled to begin commercial operations in 2025. To support this ambitious project, the Canadian federal and provincial governments recently announced a public funding injection of CAD 300 million (USD 223 million).
These investments by GM and Posco Future M signify their commitment to strengthening the domestic supply chain for battery materials, ultimately accelerating the adoption of EVs in North America.
On May 31, 2023, Hyundai Mobis, a leading Korean components manufacturer, began constructing a battery pack production plant in Indonesia. The new facility in the Deltamas Industrial Complex in Bekasi, near Jakarta, represents a USD 60 million investment and is slated to commence production in the first half of 2024.
To ensure a reliable supply of cells for their battery systems, Hyundai Mobis will source them from HLI Green Power, a joint venture between Hyundai Group and LG Energy Solution. HLI Green Power is concurrently constructing a plant near Jakarta in Karawang, scheduled to begin production in the first half of next year, with a target annual capacity of 10GWh.
Hyundai Group’s investment in the battery pack production plant complements the company’s existing EV production plant in Indonesia, which began operations in 2022. This comprehensive EV production ecosystem establishes a robust supply chain, starting from cell production, extending to battery pack assembly, and culminating in the manufacturing of electric vehicles.
In conclusion, the recent investments by General Motors, Posco Future M, and Hyundai Group in battery materials and production facilities signify the rapid progress of the EV industry. These initiatives strengthen the domestic supply chain, reduce import dependence, and accelerate the widespread adoption of electric vehicles. The advancements in North America and Indonesia underscore the global commitment to sustainable transportation, paving the way for a greener and more sustainable future.
