Hyundai Motor Group, the owner of Hyundai, Kia and Genesis brands, has announced that it will buy a 5% stake in Korea Zinc Co., the world’s largest producer of non-ferrous metals. The deal is worth 527.2 billion won ($398 million) and is part of a partnership to create a “nickel value chain” for electric-car batteries.
The partnership aims to secure the supply, processing and recycling of nickel, a key metal used in making EV batteries. Nickel is in high demand as it increases the energy density and lifespan of batteries, but it is also scarce and subject to price fluctuations. Hyundai and Korea Zinc will work together to develop technologies and solutions to optimize the use of nickel and reduce the environmental impact of battery production.
Hyundai said in an emailed statement that the partnership will help it achieve its goal of becoming a global leader in EVs. The group plans to sell 1 million EVs by 2025 and achieve a 10% share of the global EV market. Hyundai also said that it will continue to explore other strategic partnerships and investments to enhance its competitiveness in the EV industry.