Hyundai Motor Boosts Mineral Supply Chain Due Diligence Amid Rising Raw Material Prices

Hyundai Motor is strengthening its strategic mineral supply chain due diligence in response to rising prices of raw materials such as copper and nickel, which are essential for automobile production. According to industry sources, Hyundai has established a management system that can identify potential risks early by linking global data with a mineral monitoring system. On-site inspections of key mineral suppliers will be increased from three times last year to eight times this year.

The company has designated 22 kinds of minerals as responsible minerals, including nickel and graphite used in battery materials for electric vehicles, tungsten used in hard metals, and tin essential for electronics production. Supply chain risks are managed by analyzing price volatility, local disputes, or human rights and environmental risks in the production process.

The rise in mineral prices has accelerated this year, with copper prices jumping 29% to $12,844 per ton in the first quarter, aluminum rising 21%, and iron ore increasing 5%. Hyundai's move comes as global trade disputes overlap with rising raw material prices, leading to higher core part prices.