.jpg?20250613')
Hyundai Motor has a rare earths stockpile that can last about a year and it does not expect any near-term impact from global supply chain disruptions caused by China’s export curbs, said a person who attended a company investor call.
China’s decision in April to restrict exports of a wide range of rare earths and related magnets has tripped up the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.
The stockpiling by Hyundai, the world’s No.3 automaker along with its affiliate Kia Corp, indicates it is better-placed than many competitors to withstand restrictions that have already impacted production or the supplier network of companies including Ford and BMW.
A Hyundai investor relations official said the South Korean automaker had “far more wiggle room” than rivals with regard to rare earths-related supply chain issues affecting the industry, according to the attendee on the investor call, which was not open to the public.
The official told investors Hyundai’s efforts to diversify supply chains and improve procurement had succeeded and the company expected to be able to produce electric vehicles or hybrid cars without disruptions “for at least about one year,” the attendee said.
Hyundai also significantly boosted its rare earths inventories during a recent period when China had slightly relaxed its export restrictions, the official said, according to the attendee who spoke on condition of anonymity because the call was private.
The South Korean automaker’s stockpile of the key minerals had not been reported previously. It was not clear whether the inventory was solely stockpiled by Hyundai and its affiliate Kia or also included stocks held by their suppliers.
In a statement to Reuters, Hyundai declined to comment on specific inventory details or procurement strategies.
“We continuously evaluate market conditions to ensure operational stability and maintain a diversified global supply chain,” Hyundai said. “As part of our standard business practices, we maintain appropriate inventory levels to support uninterrupted production.”
&uuid=(email))