- Hyundai Motor and PT Adaro Minerals Indonesia, Tbk. (AMI) to also establish a comprehensive cooperative system regarding the production and supply of aluminum
- Based on cooperation in the production of cars, battery cells, and aluminum in Indonesia, Hyundai Motor Company will continue to discover areas of cooperation to secure future leadership of eco-friendly automobiles in Indonesia
SEOUL, South Korea, Nov. 13, 2022 /PRNewswire/ -- Hyundai Motor Company and PT Adaro Minerals Indonesia, Tbk. (AMI) today signed a Memorandum of Understanding (MoU) to secure a stable aluminum supply amid the growing demand for aluminum for automobile manufacturing. This cooperation is also to establish a comprehensive cooperative system regarding the production and supply of aluminum by AMI through its subsidiary PT Kalimantan Aluminium Industry (KAI).
(From left) Euisun Chung, Executive Chair of Hyundai Motor Group; Jaehoon Chang, President and CEO of Hyundai Motor Company; Garibaldi Thohir, President Commissioner of PT Adaro Minerals Indonesia Tbk; Edwin Soeryadjaya, President Commissioner of PT Adaro Energy Indonesia Tbk;
The MoU signing ceremony took place during the B20 Summit at Bali Nusa Dua Convention Center in Indonesia, with Jaehoon Chang, President and CEO of Hyundai Motor Company and Garibaldi Thohir, President Commissioner of PT Adaro Minerals Indonesia, Tbk., participating.
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 meets HMC's carbon neutralization policy amid the growing demand for aluminum in global automakers. In addition, supply and demand became unstable due to unpredictable situational variables which led to an increase in energy prices for aluminum production.
"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 Youngtack Lee, Senior Vice President and Head of Hyundai Motor Asia Pacific Headquarter. "This cooperation with the aluminum smelter is also expected to strengthen the relationship between Hyundai Motor Company and Indonesia with stronger synergy."
Items of cooperation in this MoU include the production and supply of aluminum produced by KAI, Hyundai Motor's right to purchase aluminum produced by KAI at an early stage, and then the first negotiation right to purchase low-carbon aluminum produced by KAI in the future (with undetermined offtake volume in the range of 50,000-100,000 TPA).
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More information about Adaro Minerals Indonesia can be found at: http://adarominerals.id.
Source: Hyundai Motor Company Related Stocks: Korea:005380 OTC:HYMTF