Wito Krisnahadi, director of PT Adaro Minerals Indonesia, also confirmed the companies had decided not to renew the agreement after its expiry.
The South Korean carmaker 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 carmaker's carbon neutralisation policy amid growing demand for aluminium among global carmakers.
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 building.
The climate activist group Kpop4Planet that had been calling for an end to Hyundai's aluminium agreement welcomed the decision.
“It is the victory of thousands of K-pop fans who genuinely care about the climate crisis, especially in Indonesia,” Kpop4Planet told Reuters, adding it will continue to monitor Hyundai's sourcing of materials for its manufacturing.
Hyundai ends Indonesia aluminium deal after climate campaign by K-pop fans
South Korea's Hyundai Motor and PT Adaro Minerals Indonesia have ended an aluminium supply agreement after calls by a climate campaigner backed by K-pop fans not to procure supplies of the metal produced using coal power.
Millions of K-pop fans have thrown their weight behind global campaigns and social causes, often using social media.
Hyundai Motor said on Tuesday it had ended its non-binding memorandum of understanding (MoU) with Adaro, a unit of Indonesia's second-largest coal miner Adaro Energy Indonesia, at the end of 2023, adding the companies had decided to explore other opportunities independently.
Wito Krisnahadi, director of PT Adaro Minerals Indonesia, also confirmed the companies had decided not to renew the agreement after its expiry.
The South Korean carmaker 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 carmaker's carbon neutralisation policy amid growing demand for aluminium among global carmakers.
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 building.
The climate activist group Kpop4Planet that had been calling for an end to Hyundai's aluminium agreement welcomed the decision.
“It is the victory of thousands of K-pop fans who genuinely care about the climate crisis, especially in Indonesia,” Kpop4Planet told Reuters, adding it will continue to monitor Hyundai's sourcing of materials for its manufacturing.
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