Benzinga | May 24, 2021 02:20PM EDT

Tesla Battery Supplier LG Collaborates with Indonesia Over $1.2B Battery Plant: Reuters

* LG Corp and State-owned Indonesia Battery Corporation (IBC) have collaborated to build a $1.2 billion new battery plant with 10-gigawatt hours (GWh) capacity, Reuters reports based on Indonesian investment minister.

* Last year, Tesla Inc (NASDAQ: TSLA) supplier LG Energy Solution had inked a $9.8 billion electric vehicle (EV) battery investment agreement with Indonesia. The plant will be built in Bekasi, Jakarta.

* LG Energy Solution was spun off from LG Chem last year.

* The first phase of construction will have a production capacity of 10 GWh, which will be later used for Hyundai Motor Co (OTC: HYMTF) EVs.

* Earlier this year, Hyundai was obligated to replace battery systems for 82,000 EVs following a product recall.

* The LG consortium includes LG Chem Ltd (OTC: LGCLF), LG Energy Solution, LG International, South Korean steelmaker POSCO (NYSE: PKX), and Chinese cobalt company Huayou Holdings.

* LG Energy Solution was in discussions to manufacture Tesla's latest advanced battery in the U.S. and Europe.

* Indonesia expects to produce 140 GWh worth of batteries by 2030.