Hyundai Mobis announced on the 6th that its joint investment with LG Energy Solution in a battery cell factory in Indonesia has recently been selected as Asia’s ‘Deal of the Year’ by the UK financial research organization TXF (Trade Export Finance). TXF reportedly recognized the significant value of this battery cell joint investment and praised the smooth financing process.
Last August, Hyundai Motor Group and LG Energy Solution successfully secured long-term loans totaling $710 million at low interest rates from five overseas financial institutions for the battery cell joint factory investment (a total of 10 years). The financial transaction, realized amidst a global trend of rising interest rates and an uncertain economic climate, was evaluated as a successful deal in the global capital market.
Hyundai Mobis played a leading role in this financing process with foreign financial institutions.
During the deal’s progress, Hyundai managed to attract high participation from both domestic and foreign financial institutions, successfully securing investment funds according to the scheduled timeline. The participation of Korea’s representative export credit agency, the Export Credit Insurance Corporation, provided credit guarantees, facilitating smooth financing. This is the first time a Korean export credit agency has participated in a financing deal related to electric vehicles.
TXF stated, “The establishment of the Indonesia battery cell joint venture between the two companies is a significant advancement for the electric vehicle transition in Asia,” explaining the reason for the ‘Deal of the Year’ selection. TXF selects and announces the top 10 deals from the global financial markets annually based on various categories.
Meanwhile, the battery cell joint factory in Indonesia, which began construction in September 2021, is nearing completion and plans to start mass production of battery cells in the first half of next year. The joint factory aims to produce battery cells with an annual capacity of 10 GWh, equivalent to more than 150,000 electric vehicle batteries.
By Lee Sang-jin daedusj@autodiary.kr