Hyundai signs MoU with Indo aluminium supplier for future automobile and EV production

At the ongoing B20 Summit in Bali, Indonesia, Hyundai Motor Company and PT Adaro Minerals Indonesia, Tbk. (AMI) signed a Memorandum of Understanding (MoU) to secure a stable aluminium supply amid the growing demand for aluminium in automobile manufacturing.

This cooperation is also to establish a comprehensive cooperative system regarding the production and supply of aluminium by AMI through its subsidiary PT Kalimantan Aluminium Industry (KAI), which would be beneficial for both parties.

The MoU signing ceremony saw the participation of Jaehoon Chang, President and CEO of Hyundai Motor Company and Garibaldi Thohir, President Commissioner of AMI. Thohir’s younger brother, Erick, is serving as Indonesia’s Minister of State Owned Enterprises.

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Aluminium is one of the natural resources found in Indonesia and is considered to have future competitiveness. Indonesia’s green aluminium is classified as low-carbon aluminium using hydroelectric power generation. It is expected to supply aluminium that meets Hyundai’s carbon neutralisation policy amid the growing demand for the material in global automakers.

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Items of cooperation in this MoU include the production and supply of aluminium produced by KAI, Hyundai Motor’s right to purchase aluminium produced by KAI at an early stage, and then the first negotiation right to purchase low-carbon aluminium produced by KAI in the future (with undetermined offtake volume in the range of 50,000-100,000 TPA).

Christian Ariano Rachmat, President Director of AMI, said, “This cooperation shows investor’s confidence on Indonesian mineral downstream processing in the world’s largest green industrial park in North Kalimantan.”

“With the support from all our stakeholders and Hyundai Motor Company who has the track record, experience, and cutting-edge technology on electric vehicles, we hope to achieve Commercial Operation Date (COD) by the first quarter of 2025 and produce 500,000 TPA aluminium in initial stage.”

Based on cooperation in the production of cars, battery cells, and aluminium in Indonesia, Hyundai Motor Company will continue to discover areas of cooperation to secure future leadership of eco-friendly automobiles in Indonesia.

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