Hyundai Motor is equipped with a rare earths stockpile sufficient to support production for about one year and does not foresee any immediate disruption from China’s recent export restrictions, a person familiar with an internal investor call told Reuters.
The disclosure comes as China’s decision in April to tighten controls on rare earths and related magnets has rattled supply chains essential to industries including automotive, aerospace, and semiconductors. China accounts for around 90% of global rare earth production.
Hyundai, the world’s third-largest automaker when combined with affiliate Kia Corp, appears to be better positioned than many rivals, including Ford Motor and BMW, whose supply chains have already faced challenges. According to an attendee of the investor call, which was not publicly accessible, a Hyundai investor relations official said the automaker had “far more wiggle room” than peers to navigate current supply chain strains.
The official attributed Hyundai’s relative insulation to successful diversification of procurement channels and strategic stockpiling of rare earths during a window when China had relaxed some restrictions. The inventory, which had not been publicly disclosed before, is believed to cover materials for key components such as magnets used in electric and hybrid vehicle motors.
Hyundai declined to comment on the specific contents or size of its inventory, but in a statement to Reuters, the company said: “We continuously evaluate market conditions to ensure operational stability and maintain a diversified global supply chain. As part of our standard business practices, we maintain appropriate inventory levels to support uninterrupted production.”
The move to shore up supplies comes amid intensifying trade tensions between the U.S. and China. Talks between top economic officials from both countries were set to continue in London this week, focusing in part on critical mineral access as geopolitical competition widens beyond tariffs. The development underscores how automakers are racing to secure stable rare earth supplies as EV demand grows and global politics complicate access to key resources.
Source: Reuters