Hyundai partners with Korea Zinc to secure supply of nickel

Hyundai has signed a new Memorandum of Understanding with Korea Zinc, a move which could secure it a table supply of nickel - a critical raw material needed to manufacture battery-electric vehicles.

Korea Zinc is Korea's leading non-ferrous metal smelting company, and the partnership will see the two firms collaborating on the sourcing and processing of the raw nickel material, as well as the exploration of new opportunities including battery recycling. The two firms additionally plan to invest in mine development projects.

The Hyundai Group announced in April 2023 that it plans to produce 3.64 million electric vehicles, and to place itself among the top three global electric vehicle manufacturers by 2030. The procurement of key raw materials including nickel and lithium will support these goals. Korea Zinc is scheduled to begin supplying Hyundai with nickel by 2026.

Korea Zinc is said to have already established a subsidiary for nickel sulfate production for electric vehicle batteries since 2017. It also plans to establish a nickel smelter in Ulsan, Korea by this year.