Hyundai Motors to Purchase 5% Stake in Korea Zinc for KRW 527B

Hyundai Motor Group will purchase a 5% stake in Korea Zinc for 527.2 billion won ($397.74 million) as part of its collaboration with the smelter to ensure a stable supply chain for electric vehicle batteries, according to an official statement.

Hyundai Motor Co announced an investment of around 2 trillion won ($1.51 billion) in Ulsan, South Korea, earlier this year to build a designated electric vehicle (EV) factory. According to Sources, the investment is part of Hyundai Motor Group's previously announced plan to invest 24 trillion won in South Korea's EV industry through 2030, which includes Hyundai Motor, Kia Corp, and Hyundai Mobis Co Ltd.

Prior to this, the company had also finalized a $5 billion joint venture with partner SK in North America to set up a new battery manufacturing plant in the state of Georgia. Both South Korean firms will have an equal stake in the plant, which will be built in Bartow County, Georgia, as part of the partnership. The facility is expected to begin producing EV battery cells in the second half of 2025.

The new plant is expected to have an annual capacity of 35 GWh of EV battery cells, which is enough to produce 300,000 all-electric vehicles.

The joint venture "further accelerates the group's electrification efforts and bolsters its position as an EV leader in the US market with a stable battery supply," according to a statement from Hyundai. Last November, the automaker signed a memorandum of understanding with SK On to secure battery supply for North America.