Australia and New Zealand Banking Group has set up a $711-million lending facility for a joint venture between Hyundai Motor and LG Energy Solution that makes batteries for electric vehicles (EV) in Indonesia.
ANZ said on Friday the lending facility for the joint venture HLI Green Power is a 10-year Korea Trade Insurance Corporation (K-Sure) backed Term Loan Facility.
South Korea's LG Energy and Hyundai began constructing their Indonesia-based $1.1 billion EV battery making facility last year, seeking to tap the nation's rich nickel reserves amid surging demand for cleaner fuel sources.
There's particular interest in Indonesia as a hub for EV batteries, "given (that) it is home to the world's largest nickel reserve," ANZ said.
Last month, LG Energy Solution also announced plans to build a new $4.4 billion lithium-ion battery plant for electric vehicles in the United States with Japan's Honda Motor Co.