Under the MoU, Hyundai would secure the right to purchase aluminium produced by Adaro’s subsidiary PT Kalimantan Aluminum Industry at an early stage of production, the statement said.
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,” 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.
(Reporting by Fransiska Nangoy and Ananda Teresia; Editing by Kanupriya Kapoor).