Hyundai Motor Group, with Korea Zinc, the No. 1 non-ferrous metal smelting company in Korea, has a comprehensive plan across the nickel value chain, including ▲ joint sourcing of raw materials for nickel, a key strategic material for electric vehicle batteries, ▲ stable supply of processing and intermediate materials, and ▲ seeking new businesses including waste battery recycling. go to cooperation
On the 30th (Wednesday), Hyundai Motor Group signed a memorandum of understanding (MOU) with Korea Zinc at Parnas Tower in Samseong-dong, Seoul, in the presence of Hyundai Motor Group Vice President Kim Heung-soo and Korea Zinc President Park Ki-duk, etc. concluded
Through this business agreement, the two companies will prioritize establishing a stable supply chain for nickel, a key material for electric vehicle batteries.
In addition, they will cooperate in the field of sourcing key raw materials that meet the standards of the US Inflation Reduction Act (IRA), such as joint purchase of nickel raw materials and joint investment in mine development projects.
In the future, they plan to seek joint promotion of new businesses, including waste battery recycling.
At the groundbreaking ceremony for Kia’s Hwaseong PBV plant in April, Hyundai Motor Group announced plans to secure top-tier leadership in global electrification by producing a total of 3.64 million electric vehicles by 2030, which are among the top 3 global electric vehicles.
To this end, Hyundai Motor Group selected nickel and lithium as top-priority materials with the goal of stably procuring core strategic materials for electric vehicle batteries, which are highly competitive around the world. We are promoting various collaborations.
The business alliance with Korea Zinc was also made to stabilize the supply chain of nickel, which has supply and demand risks and has a high cost ratio when considering country-specific laws such as the US IRA regulation.
Korea Zinc established a subsidiary to produce nickel sulfate for batteries in 2017 by utilizing the technology accumulated through smelting of non-ferrous metals such as zinc and silver. Among battery areas, it is expanding its business to the nickel field.
Nickel produced through cooperation between the two companies will meet the subsidy provisions of the US IRA. The supply of nickel will be carried out sequentially from 2026, and in 2031, about 50% of the amount of nickel required for Hyundai Motor Group’s response to the US IRA will be supplied from Korea Zinc.
In addition, it is expected to contribute to the stable securing of electric vehicle battery materials that meet various standards required for global eco-friendly vehicle production, such as regional regulations such as the European Union’s Critical Raw Material Act (CRMA) and ESG requirements.
An official from Hyundai Motor Group said, “We are also seeking various ways to cooperate with other global raw material companies to stably secure core strategic materials for electric vehicle batteries such as lithium, including nickel cooperation with Korea Zinc.”
Meanwhile, Hyundai Motor Group decided to acquire a 5% stake in Korea Zinc by HMG Global, an overseas corporation established through joint investment by Hyundai Motor Company, Kia Motors, and Hyundai Mobis, in order to strengthen the foundation for collaboration in all areas of the value chain of nickel for electric vehicle batteries. said it did
HMG Global is a US local corporation established by Hyundai Motor Group last year for the purpose of investing in the group’s new businesses and future strategies.
The price per share is KRW 504,333, and the total transaction amount is approximately KRW 527.2 billion.
In addition, Hyundai Motor Group secured the right to recommend one other non-executive director of Korea Zinc, enhancing its ability to collaborate across the entire EV battery value chain.
<사진설명> Hyundai Motor Group and Korea Zinc signed a business partnership agreement for the overall value chain of electric vehicle battery core materials
On the 30th (Wed) at Parnas Tower in Samseong-dong, Seoul, Hyundai Motor Group signed an MOU with Korea Zinc for a business alliance for the overall value chain of nickel, a key strategic material for electric vehicle batteries, and jointly sourcing raw materials, processing and supplying intermediate materials , and agreed to engage in a wide range of cooperation, including the recycling of waste batteries and the search for new businesses.
(Picture 1) On the 30th, Hyundai Motor Group Vice President Kim Heung-soo and Korea Zinc President Park Ki-duk are taking a commemorative photo after signing an MOU for electric vehicle battery core material business (from the left side of the photo).
(Picture 2) On the 30th, Hyundai Motor Group GSO (Global Strategy Office) Vice President Kim Heung-soo (fifth from the left in the photo) signed a memorandum of understanding (MOU) with Korea Zinc President Park Ki-duk (sixth from the left in the photo) for an electric vehicle battery core material business partnership. are shaking hands
2023-08-30 21:28:36
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