Hyundai Motor Group has announced its investment of $398 million in Korea Zinc Inc., the foremost lead and zinc smelting company globally. Hyundai Motor Group will procure a 5% ownership stake in Korea Zinc, entailing an investment of 527.2 billion won ($397.74 million), as revealed in an official statement.
The collaboration occurs within a memorandum of understanding (MOU) signed between Hyundai Motor Group and Korea Zinc. The partnership between Hyundai Motor Group and Korea Zinc extends to various facets, including acquiring crucial battery materials and collaborative efforts in recycling practices.
As part of its collaborative effort to ensure a stable supply chain for electric vehicle batteries, both entities are united in their pursuit of expanding future business opportunities.
As per a report from Reuters, this investment aligns with Hyundai Motor Group’s comprehensive strategy, which encompasses Hyundai Motor, Kia Corp, and Hyundai Mobis Co Ltd.
The conglomerate aims to infuse 24 trillion won into South Korea’s electric vehicle industry by 2030. This strategic initiative reflects Hyundai’s dedicated effort to capitalize on the growing demand for electric vehicles and solidify its position as a frontrunner in the evolving automotive landscape.
Earlier this year, in May, Hyundai Motor Co. had previously announced an investment of approximately 2 trillion won ($1.51 billion) in Ulsan, South Korea, to establish a specialized electric vehicle factory.
To ensure a robust and compliant supply chain, Korea Zinc and the South Korean conglomerate aim to establish a dependable source of nickel initially. This strategic collaboration encompasses the joint procurement of essential minerals and investments in mine development.
With this partnership, the company plans to secure critical materials that align with regulations outlined in the US Inflation Reduction Act, which is pivotal for electric vehicle tax credits. Both entities intend to establish a foundation for sustainable growth in the electric vehicle sector by joining forces in mineral acquisitions and mine investments.
Hyundai Motor Group recently concluded a $5 billion joint venture with its partner SK in North America. The outcome of this collaboration will result in the establishing of a battery manufacturing plant in Georgia, USA. With equal ownership stakes, this facility in Bartow County is projected to commence production of electric vehicle battery cells in the latter half of 2025.
Hyundai Motor Group is proactively partnering with international experts in raw material procurement, processing, and battery material production. Leveraging its extensive experience in non-ferrous metal smelting, Korea Zinc established a subsidiary in 2017 specifically focused on nickel sulfate production for electric vehicle batteries.
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