Hyundai Motor Co., South Korea’s top automaker, joined hands with an Indonesian miner to secure a stable aluminum supply as demand for the raw materials is expected to increase on the rapid growth in electric vehicles.
Hyundai and PT Adaro Minerals Indonesia on Sunday signed a memorandum of understanding for cooperation. Hyundai said they will establish a comprehensive cooperative system regarding the production and supply of aluminum by the Indonesian company through its subsidiary PT Kalimantan Aluminium Industry.
The automaker,
which started mass production of its iconic all-electric crossover IONIQ 5 at its new Indonesian plant earlier this year, is set to procure the best-quality aluminum from Adaro Minerals with close cooperation on the specification and process of aluminum.
Both parties are also in talks for Hyundai’s priority to procure low-carbon aluminum that the Indonesian partner will produce. That will help Hyundai to reduce carbon emissions.
Hyundai plans to expand cooperation with Indonesian companies, starting from the collaboration with Adaro Minerals.
“We have actively been cooperating with Indonesian companies for the car plant there and the start of the construction of a joint-battery factory,” a Hyundai official. “We will strengthen partnerships with Indonesian companies in the future.”
Hyundai and LG Energy Solution Ltd., the world’s second-largest EV battery maker,
are building the lithium-ion battery cell plant in the Southeast Asian country with a schedule to begin mass production in 2024.
