Hyundai has built up a rare earths inventory sufficient to sustain electric and hybrid vehicle production for about a year, positioning the company ahead of many competitors grappling with China’s tightening export restrictions. A person familiar with Hyundai’s investor call disclosed the information, suggesting the South Korean automaker is unlikely to face short-term supply disruptions.
China’s decision in April to impose new restrictions on rare earth exports has rattled global supply chains across multiple industries, from automotive and aerospace to semiconductors and defense. With China producing roughly 90% of the world’s rare earths, the move has already impacted companies like Ford and BMW.
Hyundai and its affiliate Kia appear to be in a stronger position. An investor relations official told participants on the call, held privately, that Hyundai’s early procurement strategies and diversified sourcing efforts have given it “far more wiggle room” than its peers. The official added that the company significantly increased its stockpile earlier this year when China briefly relaxed its export controls.
The rare earth inventory, which reportedly includes magnets critical for EV motors and hybrid systems, was previously undisclosed. It remains unclear whether the reserves are held solely by Hyundai and Kia or also account for materials stored by their suppliers.
While Hyundai declined to provide specific figures in a statement to Reuters, it confirmed that it continuously monitors global conditions to maintain stable operations and diversified sourcing.
The report comes as U.S.-China trade talks continue in London this week, aiming to ease tensions that now include rare earth supply restrictions in addition to tariffs. Analysts note that China’s control over critical minerals is emerging as a powerful bargaining chip in broader geopolitical disputes.
