Hyundai Motor Group announced at the weekend it has signed a preliminary agreement with PT Adaro Minerals Indonesia to collaborate in the production and sourcing of aluminium for its automotive manufacturing operations.

The South Korean automaker signed a Memorandum of Understanding (MoU) with the Indonesian mining group on the fringes of the B20 summit on the Indonesian island of Bali, ahead of this week’s G20 meeting. A final deal would see commercial operations of the partnership start in early 2025, involving an initial production of 500,000 tons of aluminium per year.

Hyundai Motor, which began production of its Ioniq 5 electric vehicle (EV) earlier this year at a newly-built manufacturing plant located near the Indonesian capital Jakarta, said the sourcing agreement with Adaro Mineral’s subsidiary PT Kalimantan Aluminium Industry includes close cooperation on the specification and production process of low-carbon aluminium.

Hyundai Motor is deepening its ties with Indonesia, with construction of a new EV battery plant scheduled to be completed in 2024 in partnership with South Korea’s LG Energy Solution on the site of its new car plant in the country.

A company spokesperson told reporters: “We have been actively cooperating with Indonesian companies for the car plant and the start of the construction of a joint-battery factory. We will strengthen partnerships with Indonesian companies in the future”.

The automaker further elaborated “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”.

PT Adaro Minerals Indonesia’s president director, Christian Ariano Rachmat, said in a statement “this cooperation shows investor confidence in Indonesia’s mineral downstream processing, particularly in the world’s largest green industrial park in North Kalimantan”.