Hyundai invests $397 million for 5% stake in Korea Zinc

Hyundai Motor Group is investing 527.2 billion won ($397.74 million) for a 5% stake in nickel producer Korea Zinc to secure EV battery materials. The deal illustrates upstream battery-material vertical integration that Indian automakers and battery makers may pursue to secure critical mineral supply.

Hyundai Motor Group is dedicating 527.2 billion won ($397.74 million) to acquire a 5% ownership stake in Korea Zinc, a prominent nickel producer essential for EV batteries. Nickel is a vital component in lithium-ion battery cathodes responsible for energy storage. The move aligns with Hyundai's broader EV strategy, including 24 trillion won ($1.9 billion) earmarked for South Korea's EV sector by 2030, a 2 trillion won ($1.51 billion) Ulsan plant, and a $5 billion battery plant with SK On in Georgia.

The investment affects automakers, battery manufacturers, and nickel and critical-mineral suppliers competing to secure cathode-material supply. Hyundai has previously invested in battery technology firms including LG Energy Solution and SK On. The Korea Zinc stake secures a steady nickel supply chain as the group targets selling 1 million EVs by 2025 and prepares to introduce a new EV brand named Ioniq, reinforcing its position in the global EV transition.

Indian automakers and cell manufacturers should monitor upstream raw-material securitisation as global OEMs lock in nickel and cathode supply through equity stakes. Affected entities should assess critical-mineral sourcing strategies, supplier partnerships, and domestic processing capacity to mitigate supply-chain risk. Hyundai's layered approach, combining material-producer equity, dedicated battery plants, and EV-brand expansion, provides a benchmark for vertical integration as EV-battery demand intensifies and nickel availability becomes a competitive differentiator.

Key figure — Investment: 527.2 billion won ($397.74 million) for 5% of Korea Zinc