K-Pop Fans Celebrate Hyundai's Decision To Cancel Buy Aluminum From Adaro Project

Hyundai Motor Company announced its resignation from the memorandum of understanding (MoU) agreement to purchase aluminum from the Adaro Minerals smelter project in North Kalimantan, Indonesia.

Just so you know, the aluminum processing and refining plant (smelter) project, Adaro's subsidiary, the second-largest mining company in Indonesia, uses the coal power plant as its energy source.

Hyundai's statement comes a year after Kpop4Planet, a K-pop fan-driven platform, launched the 'Hyundai Campaign, Drop Coal' in March 2023.

Through this campaign, more than 11,000 K-pop fans signed a petition urging Hyundai to step down from the deal with Adaro and obtain the procurement of electric vehicle raw materials generated from renewable energy-powered factories, especially solar and wind energy.

Following the end of the MoU (with Adaro) at the end of 2023, the two companies agreed not to update it and look for other opportunities independently. Hyundai Motor Company remains steadfast in carrying out the procurement of responsible and sustainable raw materials, to ensure transparency in our manufacturing process," Hyundai Motor Company's statement to Kpop4Planet via an electronic letter quoted Monday, April 1.

Although the Adaro smelter is part of the Indonesian Green Industrial Estate (KIHI) in North Kalimantan, Adaro will actually build a new unit of the coal power plant with a capacity of 1.1 GW to produce aluminum on the smelter.

Referring to Market Forces, a climate activist group that focuses on investors, this PLTU is estimated to generate up to 5.2 million tons of CO2 each year. If Hyundai continues its plan to purchase 50-100 thousand tons of aluminum per year from this smelter as agreed in the MoU, Hyundai's 3 range emissions will increase by 3 to 6 percent. In fact, Hyundai has set a target to achieve carbon neutral by 2045.

Kpop4Planet Campaigner, Nurul Sarifah stated that the appearance of Hyundai's statement was a victory from thousands of K-pop fans who participated in the 'Hyundai, Drop Coal' Campaign.

The reason is, the South Korean car company's plan to obtain aluminum produced with coal power PLTU contradicts climate targets.

"We, together with K-pop fans who care about the climate and the future of all of us, will continue to monitor Hyundai's steps in procuring raw materials to see if the company remains on the right track in accordance with its carbon-neutral commitments, as well as to increase transparency throughout the procurement chain," said Nurul in his statement to the media, Monday, April 1.

Shifra L Way, Chairman of BTS ARMY Indonesia Aino Community, appreciated the solidarity of BTS (Army) fans in supporting the Indonesian people, especially residents of North Kalimantan, by supporting the 'Hyundai, Drop Coal' Campaign. According to him, the Army is working together to create significant changes and can ensure the sustainability of this planet.

We hope Hyundai will continue its collaboration with BTS, encouraging truly sustainable electric vehicles that do not use fossil fuels that endanger our earth in production. There is only one planet that is our home, our concern for the earth is very important," said Shifra.

BTS fans collaborated with Kpop4Planet to collect more than 11,000 signatures from K-pop fans in more than 68 countries. In an action at Hyundai Motorstudio Jakarta last year, the group sent a petition and open letter from fans to the Hyundai Headquarters in South Korea.

Hyundai's resignation following international banks from the Adaro Project, according to Nabilla Gunawan, Campaigner Market Forces, is a clear warning that coal has no place in the energy transition to ensure a safer world for all.

The continuation of this PLTU-electriced smelter is chaotic. All banks that are still considering funding Adaro must review their increasingly high climate and financial risks," said Nabilla.