Hyundai Motor has confirmed it holds a rare earths inventory sufficient for approximately one year, easing concerns over potential supply disruptions from China’s tightening export controls. The update came during a recent private investor call, according to a participant who spoke on condition of anonymity.
China, which supplies around 90% of the world’s rare earths, imposed new restrictions in April on exports of rare earths and magnets—materials vital to electric vehicle (EV) motors, semiconductors, and defense equipment. The move has strained global supply chains, impacting automakers like Ford and BMW. However, Hyundai, the world’s third-largest automaker alongside its affiliate Kia, appears better positioned than many competitors.
A Hyundai investor relations representative reportedly told participants the automaker had “far more wiggle room” than others, crediting its supply chain diversification and improved procurement strategies. The company had notably increased its rare earths inventories earlier this year when China briefly relaxed its export rules.
While Hyundai declined to comment on inventory specifics, it emphasized in a statement that it “continuously evaluates market conditions” and maintains appropriate inventory levels to ensure uninterrupted EV and hybrid vehicle production.
Industry insiders also confirmed Hyundai holds a one-year supply of rare earths-related magnets critical to EVs and hybrids. It remains unclear whether this inventory is held solely by Hyundai and Kia or includes reserves from suppliers.
This strategic stockpiling effort comes amid escalating U.S.-China trade tensions, with rare earths emerging as a key leverage point for Beijing. As trade talks between the U.S. and China resumed in London, the automotive industry continues to monitor rare earth availability, a critical factor in maintaining EV production and global competitiveness.