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In addition to jointly procuring nickel raw materials, processing nickel raw materials, and assuring a steady supply of processed nickel and battery materials, the cooperation also include the investigation of potential new industries, such as battery recycling.
Date: August 31, 2023
Seoul, South Korea- Hyundai Motor Group., announced the signing of an MOU with Korea Zinc. The Group will collaborate extensively with Korea Zinc, a non-ferrous metal smelting company, along the whole nickel value chain.
Heung-soo Kim, Executive Vice President and Head of Global Strategy Office, Hyundai Motor Group, and Ki Duk Park, President and Co-CEO of Korea Zinc, took part in the MOU signing event.
In addition to jointly procuring nickel raw materials, processing nickel raw materials, and assuring a steady supply of processed nickel and battery materials, the cooperation also include the investigation of potential new industries, such as battery recycling.
The two companies intend to strive to create a reliable nickel supply chain, as nickel is an essential component of EV batteries. In order to find raw materials that satisfy IRA standards, both plans also call for combined purchases of nickel raw materials and investments in mine development initiatives.
By producing 3.64 million EVs and placing itself among the top three worldwide EV manufacturers by 2030, the Group outlined its strategy to take the lead in the EV industry in April.
The Group is giving priority to the purchase of important raw materials like nickel and lithium in order to achieve this goal. The Group is actively looking to work with numerous international companies that have expertise in the production of battery materials as well as the sourcing and processing of raw materials.
In 2017, Korea Zinc launched a subsidiary to produce nickel sulfate for EV batteries by utilizing its experience smelting non-ferrous metals including zinc and silver. The company's main objective is to increase its market share in the nickel-based EV battery sector. The development includes setting up a subsidiary to produce EV battery precursors and preparing to construct a nickel smelter at the Ulsan Industrial Complex this year.
In 2026, the cooperation hopes to begin supplying nickel. The Group anticipates obtaining half of the nickel needed to produce EV batteries that meet IRA criteria in 2031 through its partnership with Korea Zinc.
The nickel supply is also anticipated to assist the Group in ensuring stable EV battery raw materials that abide by other local EV-related laws, the Critical Raw Material Act (CRMA) of the European Union, as well as other ESG standards.
HMG Global, a foreign joint venture created jointly by Hyundai Motor, Kia, and Hyundai Mobis, intends to buy a 5% stake in Korea Zinc as part of the partnership.
Hyundai Motor Group also obtained the privilege to recommend one non-executive director. In addition to acquiring shares, the action intends to fortify strategic relations between the parties and advance collaboration on the EV business value chain.
