Hyundai Motor Group Executive Chair Chung Euisun attends an event to celebrate the completion of the Hyundai LG Indonesia (HLI) Green Power factory in Indonesian city of Karawang, Wednesday. Courtesy of Hyundai Motor

Hyundai Motor Group has established a complete production chain for electric vehicles (EV) in Indonesia, securing a key position for EV leadership in Southeast Asia, the automaker said Wednesday.

The group has completed construction of the Hyundai LG Indonesia (HLI) Green Power factory, dedicated to mass-producing EV battery cells. This facility is part of a joint venture between the carmaker and LG Energy Solution.

This enables Hyundai Motor Group to produce not just EV battery cells, but assemble vehicles in the country. Earlier, Hyundai Motor and LG identified Indonesia as the ideal place for EV battery production, as the country is the world's biggest producer of nickel, a key material for batteries.

The carmaker expected the opening of the factory to boost its EV presence across Southeast Asia. Indonesia is the fourth-most-populous nation in the world and has huge economic growth potential.

Hyundai Motor's Kona Electric will be the first EV equipped with batteries manufactured at the HLI Green Power factory. The vehicle will be assembled at Hyundai Motor Manufacturing Indonesia (HMMI).

"Vehicles produced and sold in Indonesia will set a new standard for potential customers in Southeast Asia," Hyundai Motor Group Executive Chair Chung Euisun said. "The activation of the Indonesian EV industry will provide fresh economic opportunities to Southeast Asia."

The head of the carmaker also pledged to level up its mobility partnership with Indonesia in various sectors, such as hydrogen solutions and urban air mobility.

Hyundai Motor's Kona Electric is seen at the Hyundai Motor Manufacturing Indonesia (HMMI) plant in Indonesia's industrial town of Cikarang. The Kona Electric is the carmaker's first electric vehicle equipped with batteries produced at the Hyundai LG Indonesia Green Power battery plant in Karawang New Industry City, Indonesia. Courtesy of Hyundai Motor

Indonesian President Joko Widodo and a group of 300 government officials from both countries also attended the event to celebrate the opening of the battery cell plant and the mass-production of the Kona Electric.

Hyundai Motor Group is expected to gain an upper hand for the expansion of its EV footing there, as the company is the only carmaker that can manufacture battery cells, battery packs and EVs in the country.

With the EV production chain, the company can react flexibly to the EV demand and widen its market share for eco-friendly vehicles faster than its rivals, it said.

Hyundai Motor Group plans to diversify its EV sales lineup there. The Kona Electric is the second EV that is being mass-produced at HMMI following the IONIQ 5.

"We will aggressively promote sales for the Kona Electric, so the vehicle wins a title as the most representative EV in Indonesia," an official from the carmaker said.

After driving the popularization of EVs with the model in Indonesia, the automaker will launch more EVs localized for the market.

This stands in line with the Indonesian government's drive for carbon neutrality, as the country plans to produce more than 600,000 EVs by 2030.