Hyundai Signs Aluminum Supply Deal with Indonesia’s Adaro
- November 14, 2022
- Posted by: Quatro Strategies
- Category: Manufacturing
South Korean automaker Hyundai signed a memorandum of understanding (MoU) with Indonesian metals company PT Adaro Minerals to supply aluminum for automotive manufacturing. The agreement was signed on the sidelines of the G20 Summit in Indonesia. Under the MoU, Hyundai is granted the right to purchase aluminum produced by Adaro’s subsidiary PT Kalimantan Aluminum Industry at an early stage of production.
Adaro Minerals is a unit of Indonesia’s second-largest coal miner Adaro Energy.
“We hope to achieve commercial operation date by the first quarter of 2025 and produce 500,000 tonnes per annum aluminum in initial stage,” Adaro Minerals President Director Rachmat said.
Hyundai and South Korean battery maker LG Energy Solution set up a 50/50 joint venture in Indonesia last year to build a battery cell plant for electric vehicles (EVs) with an investment of $1.1 billion. Construction of the plant is expected to be completed in the first half of 2023.
The MoU signing ceremony took place during the B20 Summit in Indonesia. The B20 is the official G20 engagement group representing the global business community with a mandate to deliver actionable policy recommendations on the priorities established by each presidency to spur economic growth and development. This year’s B20 Summit embraces the theme of ‘Advancing Innovative, Inclusive and Collaborative Growth’ in support of the G20 theme ‘Recover Together, Recover Stronger’.
“The collaboration between Hyundai and PT Adaro Minerals marks the company’s commitment to accelerating the transition to sustainable energy, especially carbon neutralization.” Hyundai said in a statement.
Aluminum in Indonesia, which is rich in natural resources and energy, is considered to have future competitiveness. Indonesia’s green aluminum is classified as low-carbon aluminum using hydroelectric power generation, which is an eco-friendly power source and is expected to supply aluminum that is in line with Hyundai’s carbon neutralization policy amid the growing demand for aluminum in global automakers.
“Hyundai Motor Company has started operating a manufacturing plant in Indonesia and is also actively cooperating with Indonesia in various areas, where it can exert synergy in the future automobile industry, such as investing in battery cell manufacturing joint ventures,” said Lee, Senior Vice President and Head of Hyundai Motor Asia Pacific. “This cooperation with the aluminum smelter is also expected to strengthen the relationship between Hyundai Motor Company and Indonesia with stronger synergy.”
Subscribe to Top Insights Today
The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights
Join the ranks of global executives and subscribe to Top Insights Today
Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business
Read more insights
Japanese Insurers Halt Ship Insurance in Russian Waters
Three Japanese insurance firms, Tokio Marine & Fire Insurance, Mitsui Sumitomo Insurance and Sompo Japan Insurance, have stopped insuring ships in all Russian waters in response to Moscow’s invasion of Ukraine, in a move that could hamper Japan’s energy imports, including LNG. The three companies have started issuing notifications to shipowners about the decision on Friday.
U.S. Threads the Needle to Reinstate Venezuelan Oil
Venezuelan President Maduro and the country’s opposition are expected to resume talks as the United States eased some sanctions to make it easier for the negotiations. Biden Administration authorized Chevron, the last U.S. oil company with a presence in Venezuela, to open talks with the Maduro government, temporarily lifting restrictions on such discussions.
China Casts Key Role for Coal to Secure Power Supply
Beijing wants coal to keep its importance in the country’s power production mix, as China’s state planner says it would be used to improve the reliability and security of China’s energy system. Like most nations of the world, soaring energy prices following Russia’s invasion of Ukraine last year has prompted Beijing to step up efforts to secure more energy supplies, in addition to supply disruptions in recent years. 56.2% of China’s electricity came from coal fueled plants last year, although Beijing has boosted its use of natural gas and renewables in recent years to reduce carbon emissions.