Hyundai Motor Group’s supplier, Hyundai Mobis, is investing around $256 million (350 billion won) in building new plants in Slovakia for EV parts. The base will include Hyundai’s first EV power systems production plant in the region, a “key bridgehead for conquering the European electrification market.”
Hyundai Mobis, the “parts and service” unit for Hyundai Motor Group (including Kia and Genesis), is the world’s fifth-largest auto parts maker.
The company supplies parts to automakers outside of Hyundai, including Volkswagen and Mercedes-Benz. To support its expansion in the world’s second-largest EV market, Hyundai Mobis announced it’s building a new EV parts plant in Slovakia.
To establish its new production base, Hyundai Mobis will invest a total of around $256 million (350 billion won).
The site is about the size of 14 soccer fields (105,700 sq. ft.) in total. It will include Hyundai’s first power electric (PE) systems production plant in Europe.
Hyundai’s supplier said the goal is to get it up and running in the second half of next year. Once complete, the PE production base can build up to 300,000 PE systems annually. The company is also building a new plant for EV braking systems at its existing Zilina facility.
Hyundai Mobis is already building EV battery systems (BSA) in the Czech Republic. A new BSA plant is also being built in Spain to supply Volkswagen.
Hyundai Mobis to build new EV parts plant in Slovakia
The PE system integrates the electric motor, inverter, and reducer. Meanwhile, the BSA includes the battery management system, battery pack, and other components for safe, efficient operation. Both are key eV components.
The company announced a “large-scale order” from Volkswagen last year to power its next-gen EVs.
Hyundai Mobis said the new EV parts plant in Slovakia is part of its plan to expand its global footprint.
Slovakia is home to leading automakers, including Kia, Volkswagen, Stellantis, and Jaguar Land Rover. The company said its new production base will be a “key bridgehead for conquering the European electrification market.”
Hyundai Mobis said it still expects Europe’s electric vehicle market to “grow steadily” despite several automakers adjusting their EV goals.
The company is also expanding its presence in North America with a local battery and PE systems production base, which will open later this year.
As the industry shifts to electric, Hyundai Mobis continues to lead the charge with new innovations in autonomous driving, advanced sensors, parking assist systems, next-gen displays, and infotainment connectivity.
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