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SEOUL, 1 September 2023: Hyundai Motor Group has taken a significant step toward solidifying its position as a global leader in the electric vehicle (EV) market through a strategic partnership with Korea Zinc. This collaboration aims to establish a robust supply chain for critical EV battery raw materials, particularly nickel. As the world transitions to cleaner and more sustainable transportation, the alliance between Hyundai Motor and Korea Zinc is poised to shape the future of EV production.
Sourcing and Processing of Nickel: A Game-Changing Collaboration
The partnership involves a comprehensive approach to nickel sourcing and processing. Hyundai Motor and Korea Zinc plan to jointly source nickel raw materials and invest in mine development projects that align with regulatory standards, such as the Inflation Reduction Act (IRA) requirements. By doing so, the Group aims to acquire 50% of the nickel needed for EV batteries that meet IRA requirements by 2031. This strategic move not only ensures a stable supply of crucial materials but also positions the Group at the forefront of meeting stringent industry standards.
Diverse Business Opportunities
Beyond securing nickel, Hyundai and Korea Zinc are exploring various business avenues, including battery recycling. As the EV market grows, the importance of sustainable practices and recycling becomes paramount. This collaboration acknowledges the significance of circular economies and aims to contribute to a more environmentally conscious EV industry.
Global EV Leadership and Material Procurement
Hyundai Motor’s ambition to produce 3.64 million EVs and become one of the top three global EV manufacturers by 2030 necessitates a robust material procurement strategy. To achieve this goal, the Group is actively pursuing partnerships with global experts in raw material procurement, processing, and battery material manufacturing. The strategic cooperation with Korea Zinc exemplifies the Group’s commitment to securing essential raw materials like nickel and lithium.
Korea Zinc’s Expertise and Expansion
Leveraging its proficiency in non-ferrous metal smelting, Korea Zinc has established itself as a significant player in the EV battery industry. With a dedicated subsidiary for nickel sulfate production, Korea Zinc is positioned to contribute substantially to the production of EV batteries. The company’s expansion plans, including a nickel smelter and precursor production subsidiary, reflect its dedication to EV battery innovation and sustainability.
Future Outlook and Stakeholder Engagement
Hyundai Motor Group’s partnership with Korea Zinc extends beyond material collaboration. The Group’s overseas joint venture, HMG Global, is set to acquire a 5% stake in Korea Zinc, enhancing the strategic ties between the two entities. This investment underscores the commitment to long-term collaboration and strengthens the ties that bind them in the pursuit of advancing the EV business value chain.
Conclusion
In an era where sustainability and innovation are driving the automotive industry’s evolution, Hyundai Motor Group’s collaboration with Korea Zinc emerges as a pivotal force. By securing a stable supply of nickel and exploring diverse business opportunities, both entities are contributing to the realization of a greener transportation landscape. As Hyundai Motor Group sets its sights on global EV leadership, partnerships like these are crucial steppingstones toward a cleaner, more electrified future.
