Hon Hai Precision Industry Co (鴻海精密) yesterday made a major step toward a foothold in the world’s electric vehicle (EV) market by signing partnership agreements with the Indonesian government and local energy and battery companies, in which local EV supplier Gogoro Inc (睿能創意) would also take part.
Hon Hai, the world’s largest electronics manufacturing company, signed a memorandum of understanding with the Indonesian Ministry of Investment, battery maker PT Industri Baterai Indonesia, PT Indika Energy and Gogoro to build a sustainable energy ecosystem in Indonesia, a joint statement said.
The government-level deal came after Hon Hai last year unveiled its first EV partnerships with the state-owned Petroleum Authority of Thailand to build an EV ecosystem in the Southeast Asian country.
Photo: Fang Wei-chieh, Taipei Times
With the world’s largest nickel reserves and massive two-wheeler market, Indonesia becomes Hon Hai’s latest partner. Nickel is a key raw material for producing electric vehicle batteries. The four-way collaboration with the Indonesian government is to concentrate on EV industries, the statement said.
Under the agreement, Hon Hai, together with Gogoro, Industri Baterai and Indika, are to “explore a wide scope of investment and enter a mutually beneficial cooperation in creating a new energy ecosystem in Indonesia,” it said.
EV battery manufacturing is to be one focal point, including battery cells, modules and packs, serving the development of a two and four-wheeled EV ecosystem, the statement said.
“I believe the implementation of a Mobility in Harmony (MIH) platform, alongside our Build-Operate-Localize strategy and manufacturing expertise, allows us to meet the market demand and create a sustainable EV ecosystem in Indonesia,” Hon Hai chairman Young Liu (劉揚偉) said.
MIH is an open EV platform created by Hon Hai to reduce EV development costs and time to market.
The cooperation also includes the development of EV supporting industries such as energy storage systems, battery exchange stations and battery recycling, it said.
The initial phase plans for a new energy and full battery platform production line in Indonesia to produce premium quality lithium-iron-phosphate (LFP) or nickle-based solid state EV batteries, it said.
China’s Contemporary Amperex Technology Co (寧德時代) and BYD Co (比亞迪) are the world’s major LFP battery makers.
“I am pleased with plans for Hon Hai and Gogoro to work with Indonesian partners. Their involvement brings in capital and shares with us their technology and experience,” Indonesian Minister of Investment Bahlil Lahadalia said.
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