Hyundai Motor Company (HMC) and PT Adaro Minerals Indonesia Tbk (ADMR) signed a Memorandum of Understanding (MoU) to guarantee a stable supply of aluminum amid increased demand for automotive manufacturing.
This corporate action was carried out on the sidelines of the B20 meeting at the Bali Nusa Dua Convention Center, Indonesia, by Jaehoon Chang, President and CEO of Hyundai Motor Company and Garibaldi Thohir, President Commissioner of PT Adaro Minerals Indonesia, Tbk.
"Hyundai Motor Company has started operating its factory in Indonesia and is actively cooperating with Indonesia in various fields where the company can synergize in the automotive industry in the future, for example by investing in joint ventures that produce battery cells," said President and CEO of Hyundai Motor Company, Jaehoon Chang, Sunday (13/11).
Jaehoon stated that this aluminum smelter cooperation is also expected to strengthen the partnership between Hyundai Motor Company and Indonesia with stronger synergies.
President Director of ADMR, Christian Ariano Rachmat said this collaboration reflects investor confidence in Indonesia's mineral downstream process in the world's largest green industrial area located in North Kalimantan.
"With the support of all stakeholders and Hyundai Motor Company which has a track record, experience and cutting-edge technology for electric vehicles, we expect to reach the commercial operating date (COD) in the first quarter of 2025 and produce 500,000 landfills of aluminum in the early stages," he explained.
This cooperation is also carried out to form a comprehensive and cooperative system for the production and supply of aluminum by ADMR through its subsidiary company PT Kalimantan Aluminium Industry (KAI), which will be mutually beneficial for both parties.
The points of cooperation in this Memorandum of Understanding include the production and supply of KAI-produced aluminum and HMC reserves the right to purchase KAI-produced aluminum at an early stage.
Then, the first negotiations regarding the purchase of low-carbon aluminum produced by KAI in the future (undetermined offtake volume in the range of about 50 thousand landfills to 100 thousand landfills).
Aluminum in Indonesia, which is rich in natural resources and energy, is seen as competitive in the future. Green aluminum is classified as low-carbon aluminum produced using hydropower, an environmentally friendly source of electricity.
The aluminumis also expected to be an aluminum supply that meets HMC's carbon neutralization policy amid increased demand for aluminum among global automakers. In addition, supply and demand have become unstable due to unexpected situational variables that have driven up energy prices for aluminum production.
Image source: www.tambang.co.id
