Rendering of Hyundai Mobis' battery systems plant in Indonesia (Hyundai Mobis)

Hyundai Mobis said Thursday it has begun the construction of its new electric vehicle battery system plant in Indonesia in its latest push for expansion into Southeast Asia’s burgeoning EV market.

The automotive parts unit affiliated with Hyundai Motor Group held a groundbreaking ceremony for the plant in West Java, along the outskirts of Jakarta, on Wednesday, with local government and company officials in attendance, including Governor of the West Java Province Mochamad Ridwan Kamil and Oh Heung-sub, senior vice president of electrification at Hyundai Mobis.

Set to be completed by the first half of next year, the Indonesian plant will be located in the industrial complex of Kota Deltamas, some 60 kilometers from the capital city of Jakarta.

The plant will secure battery cells from its local joint venture, called HLI Green Power, and the finished battery system as a module will be supplied to a nascent Hyundai Motor plant.

Hyundai Motor Group also plans to create its own production line within the Mobis plant with a combined investment of $60 million.

The local government also reportedly offered diverse administrative benefits and tax cuts for the new plant that could play a role as part of its EV initiative.

Following its production expansion in North America and Europe, Hyundai Mobis said it aims to complete its global electrification value chain through the new production base in Southeast Asia.