Recently, Hyundai Motor Group signed a cooperation agreement with Zhejiang Huayou Recycling Technology Co., Ltd. to jointly build an EV power battery recycling system in Indonesia. The cooperation covers the recycling and reuse of battery production scrap and end-of-life batteries, aiming to achieve a closed-loop resource system across the entire battery life cycle. Background of the Cooperation As the world’s largest nickel producer, Indonesia is pushing with unprecedented determination to transform itself from a raw material exporter into a global EV battery manufacturing hub. According to the Indonesian government’s plan, by 2030 the country will achieve total EV battery capacity of 100 GWh and plan to produce about 600,000 pure EVs annually. The HLI Green Power battery plant, jointly established in Indonesia by Hyundai Motor Group and LG Energy Solution, is a key part of this strategy. Located in Karawang, West Java, the plant has a total investment of $1.1 billion and began operations in 2024. It has annual capacity of 10 GWh and can supply battery cells for more than 150,000 EVs. The plant mainly supports EV models of Hyundai Motor Group in Southeast Asia, India, and other markets. However, with the rapid expansion of battery capacity, the disposal of end-of-life batteries and manufacturing scrap has become an increasingly prominent issue. The Indonesia Battery Association forecasts that by 2030 the country’s end-of-life power batteries will reach 120,000 mt. But the existing recycling system has clear shortcomings: insufficient processing capacity, lack of technical standards, and more than 70% of processing handled through informal recycling channels. In the suburbs of Jakarta, multiple open-air acid-leaching lithium workshops have even emerged, causing soil heavy metal levels to exceed EU limits by 50 times. This cooperation carries multiple implications for the development of Indonesia’s battery industry and even that of Southeast Asia as a whole: Improving the Local Industry Chain: Through the New Energy Law, the Indonesian government has designated EVs as a national strategic industry and requires foreign automakers to commit to building battery plants in Indonesia, with 40% local sourcing of parts to be achieved by 2027. The cooperation between Hyundai Motor and Huayou Recycling helps Indonesia build a complete industry chain spanning mineral extraction, battery manufacturing, and recycling. Addressing Resource Challenges: Although Indonesia is rich in nickel resources, it produces almost no cobalt, and its lithium resources depend on imports from Australia. Through battery recycling, it can partially reduce its import dependence on critical minerals and improve resource security. Attracting More Investment: The Indonesian government has introduced fiscal incentives such as zero import tariffs, exemption from luxury sales tax, and a reduction in VAT from 11% to 1%, to attract foreign investment into the battery industry. The battery recycling cooperation in Indonesia between Hyundai Motor Group and Huayou Recycling is not only a commercial move by the two enterprises, but also a reflection of the global battery industry's transition toward a circular economy. With the rapid expansion of the EV market, battery recycling has shifted from an environmental protection issue to a matter of resource strategy and economics.

[SMM Morning Meeting Summary: LME Inventory Increased by 20kt, LME Zinc Came Under Pressure] Overnight, LME zinc opened at $3,277/mt. In early trading, LME zinc briefly rose to a high of $3,293/mt before bulls reduced open interest, sending LME zinc fluctuating downward throughout the session and touching a low of $3,210/mt during the night session. The center then rebounded slightly, and it finally closed down at $3,233/mt, down $46/mt, a decrease of 1.4%, with trading volume increasing to 13,404 lots and open interest falling by 3,868 lots to 214,000 lots.

The Democratic Republic of Congo has opened its first gold refining facility, marking a significant step in the country’s effort to capture greater value from its vast mineral wealth.

[SMM Tin Morning Briefing: The Most-Traded SHFE Tin Contract Opened Slightly Higher in the Night Session and Then Fluctuated Downward, While Downstream Enterprises Concentrated Their Restocking on Dips]

Recently, Indonesia's Investment Minister Rosan Perusahan announced that the nation has secured approximately US$1.4 billion in foreign investment specifically earmarked for solar power infrastructure development. Concurrently advancing this significant initiative, Indonesia's sovereign wealth fund, Dana Abadi Nasional, plans to establish a large-scale solar panel manufacturing facility domestically with an annual production capacity of 50 gigawatts. This project has received an initial investment of US$1.4 billion.

The EU is proposing the 'Industrial Accelerator Act' to counter foreign competition, particularly from China. To access public funds, strategic sectors (green tech, EVs, steel) must meet minimum local content thresholds, such as 70% EU-made components for EVs. Additionally, foreign investments over €100 million in emerging sectors (like batteries) from dominant countries holding over 40% of global capacity will face strict conditions: at least 50% EU staff, maximum 49% ownership, and mandatory tech transfer. France strongly backs the move, while Germany favors a more inclusive 'Made with Europe' approach.