Lead the Charge slams Hyundai over controversial coal mine links

The call comes as Hyundai faces accusations of “sportswashing” as the World Cup sponsor is also linked to other controversial suppliers, including miner Ternium, whose iron ore mines in Mexico have been tied to the forced disappearances of Mexican environmental activists and severe environmental pollution in Monterrey (Mexico) and Rio de Janeiro.

Data from ship-tracking platform Kpler shows both Hyundai Steel and Posco, another leading South Korean steelmaker, imported almost 9.5Mt of coking coal from the Moatize mine in Mozambique, which a court ordered closed in December 2024 due to the health and environmental impact for local residents. But the Korean steelmakers continued importing the coal for 18 months after the court’s suspension order, indicating serious flaws in the company's processes for spotting and managing risks in its supply chain.

The coal shipments correspond to approximately 11Mt of automotive-grade crude steel which is equivalent to around 11 million cars, according to Lead the Charge network member Action Speaks Louder.

Hyundai told Korea’s MBC television that “it intends to strengthen risk management across its entire raw and auxiliary material procurement network, in line with global regulatory trends.”

Residents live as close as 100 metres from the Moatize mine, where blasting occurs twice a day. Concentrations of lead, selenium, and nitrate in surface and groundwater exceeded permissible limits, and complaints over cracked homes, contaminated drinking water, and destroyed farmland have mounted over the years.

In December 2024, the Tete Provincial Administrative Court ordered Vulcan Mozambique to suspend mining in certain sections within 72 hours and to implement pollution-mitigation measures within 90 days. Vulcan resumed operations within three days.

Hyundai faces global pressure as a World Cup sponsor amid the controversies in its supply chain. Rallies will take place in Guadalajara and Monterrey, Mexico over its links to Ternium. Protests in Los Angeles and New York will highlight human and workers rights abuses, from child labour, labour trafficking and prison labour in the Hyundai supply chain to Hyundai’s deployment of robots at World Cup games as well as the impact of the World Cup on workers and locals, from labour trafficking and exploitation to rising housing costs.

Research shows Hyundai Steel is consistently among the worst steel makers in terms of 'forward momentum cleaning up their core operations', and remains 'structurally committed to coal-based production'.

The Lead the Charge ranking of global auto makers shows Hyundai has much work to do in cleaning up its supply chains and is being left behind by a core group of companies which are starting to implement more effective practices for decarbonising the materials used in their vehicles and mitigating environmental and human rights abuses in their supply chains.

Matthew Groch of Mighty Earth commented: “Hyundai’s approach to supply chain risk is failing. Ignorance is no defense when other automakers are building systems to identify and prevent abuses. Instead of pouring millions into World Cup ads, Hyundai should invest in cleaning up its dirty supply chains. Investors, workers, and customers deserve better than a company racing to the bottom.”

Kinam Kim, senior green steel strategist, Action Speaks Louder said: “When a company that has externally championed 'responsible sourcing' and 'carbon neutrality' continues to source from a mine that a court has ordered halted, the very gap between its code of conduct and its actual practice may become grounds for greenwashing claims. Unless Hyundai Motor and Kia review raw-material-stage due diligence at the group level, this is no longer a question of a single steel sheet — it is a question of accountability for the entire group.”