hyundai motors signs memorandum for aluminum

Hyundai signs MoU with PT Adaro Minerals for aluminum supply

Hyundai Motor signs a Memorandum of Understanding with PT Adaro Minerals Indonesia. They are going to secure a stable aluminum supply amid the growing demand for aluminum in the automobile industry. Both companies will establish a comprehensive system regarding the production and supply of aluminum by AMI. The subsidiary PT Kalimantan Aluminum Industry (KAI) will be involved.

hyundai motors signs memorandum for aluminum
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Aluminum in Indonesia is rich in natural resources and energy. 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 meets HMC’s carbon neutralization policy.

“We hope to achieve commercial operation date by the first quarter of 2025 and produce 500,000 tonnes per annum aluminum in initial stage,” said Christian Ariano Rachmat, president director of Adaro Minerals. Last year, Hyundai Motor Group and LG Energy Solution set up a joint venture to establish a battery cell plant for electric vehicles in West Java province, with an investment of $1.1 billion, and each company owning half the business. Construction of the plant is expected to be completed in the first half of 2023.The MoU was signed on the sidelines of the G20 summit in Bali, Indonesia.

Climate change

“The fact is that the world is facing a climate change crisis. The auto industry is rethinking energy and investing in renewable energy, but it is an endeavor that we cannot pursue alone. With common-sense solutions, government and industry can provide the right incentives to businesses and consumers to embrace clean mobility,” said Chung  Euisun, Hyundai Motor Group Executive Chair. The B-20 is an official G-20 dialogue forum formed to facilitate the delivery of policy recommendations to the leaders of G20. This year s G-20 will be held under the theme of “Advancing Innovative, Inclusive, and Collaborative Growth.”

Giving an example of the climate crisis and severe energy poverty, Chung emphasized the need for all responsible people in a global society, including governments and businesses, to work together to switch to sustainable energy solutions. He also highlighted the Korean automaker’s efforts toward carbon neutrality, mentioning hydrogen as a future clean energy solution that can “solve many issues” regarding supply and storage. “Governments and businesses must play their part and drive global change. Together, we can set the conditions to accelerate the adoption of eco-friendly solutions.” Chung also reiterated Hyundai Motor Group’s dedication to pursuing sustainable growth, saying that its net-zero strategy across all its value chains is part of what it seeks to continue to make, to make the “right moves for the right future for everyone.”