Hyundai Motor Invests 527.2 Billion KRW in Korea Zinc
Korea Zinc has formed a business partnership with Hyundai Motor Group, covering everything from securing key raw materials for batteries to recycling used batteries.
On the 30th, Korea Zinc announced that it had attracted an investment of 527.2 billion KRW from HMG Global, a Hyundai Motor Group overseas affiliate. The business partnership between the two groups includes securing supply chains for key raw materials related to electric vehicle batteries, supplying battery intermediates, and cooperating on future business ventures.
First, the two groups will jointly pursue mining investment and development projects to secure core material raw materials that comply with the U.S. Inflation Reduction Act (IRA), and cooperate to establish a nickel supply chain, a key strategic material for electric vehicle batteries. They also plan to collaborate on future business expansion by reviewing business opportunities such as used battery recycling cooperation and jointly developing necessary technologies.
Korea Zinc will issue 1,045,430 new shares to HMG Global through a third-party allotment paid-in capital increase. Korea Zinc plans to use the investment funds as capital for new businesses such as the Troika Drive new business in secondary battery material business.
Through this business partnership, Korea Zinc expects to secure a stable sales channel early for its secondary battery material business.
They will cooperate to stably procure used electric vehicle batteries from Hyundai Motor Group and establish a battery circular economy system where recycled raw materials are reused in Hyundai Motor Group’s electric vehicle production.
The background of this cooperation lies in Korea Zinc’s planned construction of an 'All-in-One Nickel Refinery' within this year. Korea Zinc’s board of directors approved an investment plan worth 506.3 billion KRW for the nickel refining business on the same day.
The refinery’s production capacity (CAPA) is 42,600 tons per year based on nickel metal content, and combined with the annual production capacity of 22,300 tons of nickel sulfate by its subsidiary KEMCO, the total reaches approximately 65,000 tons. This is the world’s second-largest nickel sulfate production capacity as of this year, and the largest excluding China.
Choi Yoon-beom, Chairman of Korea Zinc, said, "As the electric vehicle market expands, securing key battery raw materials will be both a risk and an opportunity faced by all battery industries and electric vehicle manufacturers. We will contribute to the growth of the battery industry as the optimal partner capable of various forms of cooperation throughout the entire battery lifecycle."
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