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Hyundai Motor Group to buy 5% stake in Korea Zinc Co. , the world's largest plant for the production of non-ferrous metals.
The group, which controls the Hyundai, Kia and Genesis brands, has signed a partnership with the plant to jointly develop a "nickel value chain" that purchases, processes and recycles the metal needed for electric vehicle batteries, the Seoul automaker said. Hyundai will spend $398 million to buy shares in Korea Zinc as part of the deal.
Hyundai plans to purchase 50% of the nickel it needs for electric vehicle batteries as part of a partnership by 2031 to comply with President Joe Biden's Inflation Reduction Act, which encourages automakers to produce electric vehicle components outside of China. The supply chain built with the help of Korea Zinc, also based in Seoul, will comply with European requirements for the supply of critical minerals and other ESG rules, the automaker said.
By the end of this decade, the company aims to become one of the top three electric vehicle manufacturers in the world, producing 3.64 million vehicles per year.
