In a decisive step toward fortifying ethical sourcing practices, South Korea’s Hyundai Motor Group has announced an expansion of its responsible mineral tracking initiative. The company will now monitor approximately 20 essential materials, including lithium, nickel, graphite, and cobalt, critical elements used in electric vehicle (EV) batteries. This move comes in response to mounting international scrutiny over human rights and environmental compliance in global supply chains.

As sustainability and ethical governance rise to the forefront of corporate accountability, Hyundai is intensifying its Environmental, Social, and Governance (ESG) efforts. The automaker has asked its major suppliers to disclose the origin and mining locations of these so-called “responsible minerals.” This enhanced traceability is part of Hyundai’s comprehensive strategy to alleviate environmental and ethical risks throughout its production ecosystem.

Since 2022, Hyundai has published an annual conflict minerals report to demonstrate its commitment to ethical sourcing. Traditionally, the focus was on 3TG minerals i.e., tin, tantalum, tungsten, and gold, which are often mined under exploitative conditions in conflict zones such as the Democratic Republic of Congo. However, the updated policy significantly widens this focus to include high-demand EV battery materials such as lithium, cobalt, graphite, and copper, all of which are increasingly scrutinized for their environmental and social impact.

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This policy shift is a result of Hyundai's ranking in a 2024 Amnesty International report, where it placed 11th out of 13 global EV manufacturers in human rights due diligence. The organization has urged Hyundai and its peers to strengthen their adherence to international human rights frameworks.

Moreover, Hyundai’s initiative reflects a growing global regulatory landscape that enforces ethical supply chain practices. The United States' Uyghur Forced Labor Prevention Act (UFLPA), enacted in 2022, prohibits imports tied to forced labor, particularly in China’s Xinjiang region. In 2024, the European Union followed suit, making it compulsory for member states to investigate supply chains for potential links to labor abuses.

Legal experts warn that companies failing to comply with these international standards could face serious legal consequences, including lawsuits in foreign jurisdictions. 

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In the end, Hyundai’s expansion of mineral tracking reflects not just regulatory compliance but a strategic move toward long-term sustainability in EV manufacturing. As the demand for electric vehicles surges globally, the automaker aims to ensure that its growth aligns with the highest standards of environmental and human rights accountability.

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Source: Pulse