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Hyundai ends Indonesia aluminium deal after climate campaign by K-pop fans
At the time of the signing, Hyundai said it expected to procure aluminium from Adaro that meets the automaker's carbon neutralization policy amid growing demand for aluminium among global automakers.
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A backhoe loads tons of coal to a heavy-duty truck at Adaro Energy's site in Kalimantan. The company is planning to expand into green-energy business starting this year through its subsidiary Adaro Power. (Courtesy of http://www.adaro.com//-)
T
he South Korean automaker signed the MoU with Adaro Minerals in 2022 to secure the right to purchase aluminium produced by Adaro's subsidiary PT Kalimantan Aluminium Industry.
At the time of the signing, Hyundai said it expected to procure aluminium from Adaro that meets the automaker's carbon neutralization policy amid growing demand for aluminium among global automakers.
Smelting aluminium requires huge amounts of energy and when using coal produces large volumes of carbon emissions.
Adaro plans to power the third phase of its aluminium smelter project with a hydropower plant its group is currently building.
The climate activist group Kpop4Planet that had been calling for an end to Hyundai's aluminium agreement welcomed the decision by the carmaker.
"It is the victory of thousands of K-pop fans who genuinely care about the climate crisis, especially in Indonesia," Kpop4Planet told Reuters, adding that it will continue to monitor Hyundai's sourcing of materials for its manufacturing.
