Korean automaker Hyundai Motor inks aluminium supply agreement with Indonesia's Adaro

On November 13, 2022, the Indonesian large-cap house Adaro stated that PT Adaro Minerals Indonesia Tbk inked a memorandum of understanding (MoU) with South Korea's auto giant Hyundai Motor Company on aluminium supply for automobile manufacturing.

In Bali, Indonesia, a Memorandum of Understanding was signed on the sidelines of the G20 summit. The MoU stated, "Hyundai would secure the right to purchase aluminium produced by Adaro's subsidiary PT Kalimantan Aluminum Industry at an early production stage and then the first negotiation right to procure low-carbon aluminium produced by KAI in the future with undetermined offtake volume in the range of 50,000-100,000 TPA.”

PT Adaro Energy Indonesia Tbk is the second-largest coal miner in the country by production volume and its largest by market capitalisation.

Christian Ariano Rachmat, the President Director of Adaro Minerals, said, "We hope to achieve commercial operation date by the first quarter of 2025 and produce 500,000 tonnes per annum aluminium in the initial stage."

In West Java province, Hyundai Motor Group and LG Energy Solution jointly established a battery cell plant for electric vehicles with an investment of $1.1 billion, each owning half of the business. It is expected to be completed in the first half of 2023.