Hyundai Motor Has One-Year Rare Earths Stockpile Amid Global Supply Concerns

Hyundai Motor, the world’s third-largest automaker alongside affiliate Kia Corp, has reportedly built a strategic buffer against supply chain disruptions stemming from China’s export restrictions on rare earths, as per news reports. These minerals are critical to the production of electric and hybrid vehicles, and China’s control over their export has triggered concerns across global industries.

Hyundai’s Strategic Stockpile and Resilience

Hyundai’s investor relations team informed participants in a private call that the company has successfully diversified its supply chains and strengthened procurement systems. As a result, Hyundai holds a stockpile of rare earths and related magnets sufficient to maintain EV and hybrid vehicle production for around a year. The move places Hyundai in a favourable position compared to competitors such as Ford and BMW, who are already facing supply-related setbacks.

The stockpile, accumulated partly during a window when China had slightly relaxed its export restrictions, had not been previously disclosed. It remains unclear whether these inventories are held directly by Hyundai and Kia or include those of their suppliers. Nonetheless, the South Korean automaker’s ability to withstand current global pressures reflects a proactive and structured supply chain strategy.

Global Context and Impact of China’s Export Curbs

China’s April decision to restrict exports of a wide range of rare earths and associated magnets has had far-reaching implications. With China producing nearly 90% of the world’s rare earths, the restrictions have disrupted production pipelines not just in automotive, but also in sectors such as aerospace, semiconductors, and defence.

Hyundai’s preparedness comes as trade tensions between the US and China continue to escalate. Rare earths are emerging as a key point of leverage in a broader geopolitical battle. While companies like Hyundai appear to be navigating the turbulence effectively, the wider industry remains vulnerable to further tightening of export policies.

Read More: Maruti Suzuki and Hyundai Motor India Eye Strong Export Growth Amid Domestic Challenges!

Hyundai Motor India Share Proce Performance 

As of June 10, 2025, at 1:55 PM, Hyundai Motors India share price is trading at ₹1,935.10 per share, reflecting a decline of 0.88% from the previous closing price. Over the past month, it has surged by 10.21%

Conclusion

Hyundai Motor’s advance planning and supply chain foresight have enabled it to safeguard production amidst a volatile global rare earths market. With a robust inventory and improved procurement strategy, the company stands as a rare example of resilience in an industry bracing for prolonged uncertainty.

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