Adaro Minerals Indonesia, Tbk, an Indonesian metals firm, announced on Sunday that it has signed a Memorandum of Understanding (MoU) with Hyundai Motor Company of South Korea regarding the supply of aluminium for the production of automobiles.
On the eve of the G20 conference in Bali, Indonesia, the MoU was signed. According to the announcement, Hyundai would be allowed the right to buy aluminium manufactured by PT Kalimantan Aluminum Industry, a subsidiary of Adaro, at an early stage of production under the terms of the MoU.
The second-largest coal miner in Indonesia, Adaro Energy, owns Adaro Minerals. According to Christian Ariano Rachmat, president, and director of Adaro Minerals, “we hope to achieve commercial operation date by the first quarter of 2025 and produce 500,000 tonnes per annum aluminium in the initial stage.”
With an investment of $1.1 billion and each company holding half of the company, Hyundai Motor Group and LG Energy Solution established a joint venture last year to build a battery cell plant for electric vehicles in the West Java region. The plant’s construction is anticipated to be finished in the first half of 2023.