Hyundai Secures One-Year Rare Earth Minerals Supply, Avoids Supply Chain Disruption: Report
Hyundai Motor Co. has secured a strategic advantage in the global automotive supply chain crisis by maintaining approximately one year of rare earth mineral stockpiles, positioning the South Korean automaker ahead of competitors struggling with China’s export restrictions.
What Happened: The world’s third-largest automaker informed investors during a private call that it expects no near-term disruptions from rare earth supply chain issues, reported Reuters.
Hyundai significantly boosted its rare earth inventories when China temporarily relaxed export restrictions and also holds about one year of rare earth-related magnets needed for electric and hybrid vehicle production.
The company’s investor relations official told participants that Hyundai has “far more wiggle room” than rivals regarding supply chain disruptions and expects to produce EVs and hybrid vehicles without interruption “for at least about one year,” the attendee said. The stockpile details had not been previously reported.
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Why It Matters: China’s April decision to restrict rare earth exports has created widespread panic across the automotive industry, with suppliers willing to “pay any price” for materials. The restrictions threaten production at major automakers including General Motors Co. (NYSE:GM), Ford Motor Co. (NYSE:F), and Tesla Inc. (NASDAQ:TSLA).
China controls over 70% of global rare earth mining and more than 90% of rare earth alloy and magnet production. Some European plants have already shut down, while others face closure without supply improvements.
Trump administration officials expect China to lift restrictions following ongoing London trade negotiations, with Treasury Secretary Scott Bessent’s delegation anticipating Beijing will “release rare earths in volume” after current talks conclude.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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