Taipei, Feb. 10 (CNA) Taiwan's manufacturing giant Hon Hai Precision Industry Co. will launch an investment to make electric vehicles and batteries in Indonesia in the third quarter of this year, it was confirmed on Wednesday.
Indonesian Investment Minister Bahlil Lahadalia told a forum in Jakarta that Hon Hai, also known as Foxconn internationally, will build a plant on a 200-hectare plot in the Batang Industrial Complex in Central Java, according to reports by Reuters and Indonesia-based news website Industry.co.id.
In addition to vehicles, the factory will also produce battery cells, cathode precursor and telecommunication spare parts, the reports said.
On Jan. 21, Hon Hai and Taiwanese e-scooter brand Gogoro Inc. signed a memorandum of understanding with Indonesian state-owned battery maker Indonesia Battery Corp., Indonesian integrated energy company Indika Energy, and Industri Baterai Indonesia on developing electric vehicles in the Southeast Asian country.
Hai Hai Chairman Liu Young-way (劉揚偉) said Thursday that the company will seal a formal agreement with its Indonesian partners in March, when presiding over a ceremony to mark the start of business after the Lunar New Year holiday at Hon Hai's headquarters in New Taipei.
Total investment by the five partners will reach US$8 billion, Liu said.
Beyond cooperation on electric vehicle development, the project was also aimed at forging a battery supply chain in Indonesia that could help support a sustainable energy ecosystem, according to Hon Hai.
