(Corrects the spelling of Hyundai Chairman’s Name in Paragraph 10)

JAKARTA (Reuters).-Joko Widodo launched Wednesday’s new Hyundai Motor Group plant that will manufacture Indonesia’s first locally assembled electric vehicle. This is in line with President Joko’s vision of creating a complete EV supply network using the country’s resources.

Jokowi as President was known at Wednesday’s inauguration of the new plant. He stated that incentives were being provided by the government and had eliminated red tape in an effort to increase investment in EV development.

He stated, “We must be an important participant in the global supply chain for electric cars.”

Our country boasts large mineral reserves that could be used to create electric vehicles.

Indonesia is a significant producer of nickel ore. This material is important for electric vehicles.

Jokowi stated that it also produces cobalt which is used in batteries. It has large deposits de bauxite, ores and a lot of sand, which could be useful for EV production.

Jokowi has made it a priority to develop Indonesia’s natural resources downstream in order to attract foreign investment and create new jobs.

He said that all EVs manufactured in Indonesia by 2024 will be made from locally-sourced batteries and other components.

Hyundai stated in 2019 it was investing $1.55Billion to reach 2030. Its initial production capacity will be 150,000 units per year. This can later increase to 250,000 every year.

Euisun Chung, the chairman of the group, stated that the new plant will also link with a joint venture Hyundai-LG battery plant. This plant is expected to open in 2024.

LG Energy Solution and Hyundai began construction on the $1.1billion EV battery station in September. The plant is capable of producing 10 gigawatts per hour of battery power.