Hyundai Motor to expand mineral tracking to meet ESG standards

(Lee Chung-woo)

South Korea’s Hyundai Motor Group is expanding the scope of its responsible mineral sourcing initiative to about 20 key materials, including lithium, nickel, and graphite used in electric vehicle (EV) batteries, in response to growing international scrutiny over environmental and human rights compliance in global supply chains.

The automaker group recently requested its key suppliers to identify the origin and mining sites of these so-called “responsible minerals,” as part of its efforts to manage environmental and ethical risks throughout the production process.

Hyundai has published a conflict minerals report since 2022 to ensure that the group’s mineral sourcing does not involve unethical practices such as human rights abuses or environmental damage. Traditionally, conflict minerals have included tin, tantalum, tungsten, and gold (3TG), mined in war-torn regions like the Democratic Republic of Congo. The new policy expands the scope to include other critical materials that require ethical oversight, including cobalt, lithium, and copper.

Hyundai’s responsible mineral management comes in response to rising ESG standards. A 2024 report by Amnesty International ranked Hyundai 11th among 13 global EV makers in human rights due diligence, prompting the NGO to call for stronger compliance with international human rights frameworks.

The company’s latest move also reflects global regulatory trends, with the U.S. Uyghur Forced Labor Prevention Act (UFLPA) barring imports linked to forced labor since 2022. The European Union adopted similar regulations in 2024, requiring member states to screen goods potentially associated with forced labor.

Legal experts caution that companies failing to uphold human rights in their supply chains could face lawsuits abroad. “The push for human rights due diligence legislation is accelerating in advanced economies, and Korean exporters need to take this seriously,” Song Si-hyun an attorney at Seoul-based law firm JungJin, said.