SK Hynix Shares Surge on Hopes for Upcoming ADR Issuance 
Visa to Move European Headquarters to London’s Canary Wharf 
SpaceX CEO Elon Musk Denies Reports of $800 Billion Valuation Fundraise 
Netflix Nearing Major Deal to Acquire Warner Bros Discovery Assets 
Airline Loyalty Programs Face New Uncertainty as Visa–Mastercard Fee Settlement Evolves 
IBM Nears $11 Billion Deal to Acquire Confluent in Major AI and Data Push 
Malaysia Airlines Ordered to Compensate Families of MH370 Passengers 
Morgan Stanley Downgrades Tesla as AI Growth Expectations Rise 
U.S.-EU Tensions Rise After $140 Million Fine on Elon Musk’s X Platform 
Boeing Executive Says Trump’s Equity Stake Plan Won’t Target Major Defense Contractors 
Spirit Airlines Reverses Pilot Furlough Plans Amid Updated Staffing Outlook 
Airbus Faces Pressure After November Deliveries Dip Amid Industrial Setback 
Robinhood Expands into Indonesia with Strategic Crypto and Brokerage Acquisitions 
EU Prepares Antitrust Probe Into Meta’s AI Integration on WhatsApp 
Lockheed Martin Secures $1.14 Billion Contract Boost for F-35 Production 
IKEA Expands U.S. Manufacturing Amid Rising Tariffs and Supply Chain Strategy Shift 
Southwest Airlines Has $11 Million Fine Waived as USDOT Cites Operational Improvements 
South Korea's Hyundai Motor Co and PT Adaro Minerals Indonesia Tbk have ceased an aluminum supply agreement after calls by a climate campaigner backed by K-pop fans. The call was against procuring supplies of the metal produced using coal power.
Agreement Termination and Exploration of New Opportunities
The Star reported that millions of young K-pop fans have thrown their weight behind various global campaigns and social causes, often leveraging social media. Hyundai Motor terminated its non-binding memorandum of understanding (MoU) with Adaro at the end of 2023, indicating that both companies have pursued other opportunities independently.
Wito Krisnahadi, director of PT Adaro Minerals Indonesia, confirmed the decision not to renew the agreement following its expiration.
Focus on Carbon Neutralization and Renewable Energy
The South Korean automaker entered the MoU with Adaro Minerals in 2022 to secure the right to purchase aluminum produced by PT Kalimantan Aluminium Industry, a subsidiary of Adaro. Hyundai aimed to procure aluminum, meeting its carbon neutralization policy amidst increasing demand among global automakers. The smelting of aluminum requires significant energy, with coal-based production resulting in substantial carbon emissions.
Transition to Hydropower for Sustainability
According to Reuters, Adaro plans to utilize a hydropower plant for the third phase of its aluminum smelter project, aligning with sustainability goals. The climate activist group Kpop4Planet hailed Hyundai's decision to end the agreement, attributing the victory to the collective efforts of environmentally conscious K-pop fans. Kpop4Planet intended to monitor Hyundai's sourcing practices to ensure environmental responsibility in its manufacturing processes.
The termination of the MoU between Hyundai Motor and Adaro Minerals highlights a growing trend among corporate giants to reassess their partnerships in light of environmental sustainability goals. This move has ignited conversations within the automotive industry about the importance of responsible sourcing and the potential impact of supply chain decisions on global carbon emission targets.
Photo: Hyundai Newsroom
