Investing 90 Billion Won... Targeting Completion in Second Half of Next Year
Planned Hub for Next-Generation Electric Vehicle Core Module Supply
Aerial view of Hyundai Mobis Ulsan electric vehicle dedicated module factory (Provided by Hyundai Mobis)
Hyundai Mobis is investing 90 billion KRW to build a new electric vehicle (EV) dedicated module factory in Ulsan. Although the EV market is experiencing a 'chasm (temporary demand stagnation)' phenomenon, the company believes it is an 'inevitable future' and plans to steadily enhance its EV-related capabilities.
On the 9th, Hyundai Mobis announced that it signed a Memorandum of Understanding (MOU) with Ulsan Metropolitan City to establish the new EV module factory. The factory will serve as a production hub supplying core modules for next-generation EV models.
Approximately 90 billion KRW will be invested to complete the new factory by the second half of next year. It will be built near the new EV factory Hyundai Motor is constructing in Ulsan. Hyundai Mobis plans to supply key modules such as suspension (chassis) and driver’s seat for Genesis EV models mass-produced by Hyundai Motor at this factory. The chassis module will be supplied to finished vehicles in a combined form with the drive (PE) system, which consists of electric motors, inverters, and other components.
Hyundai Mobis intends to proactively respond to the expansion of the EV market through the new factory. Although the pace of EV adoption has slowed, the direction is clear. The company aims to secure stable production capacity by investing ahead of the full-scale growth of the electrification market after this temporary pause. This strategy aligns with its continuous expansion of core electrification parts production bases domestically and overseas.
Currently, Hyundai Mobis operates production plants for key EV components such as Battery System Assembly (BSA) and PE systems in Ulsan, Daegu, Chungju, and Pyeongtaek. Overseas, it produces battery systems in China and the Czech Republic and is building a BSA factory in Indonesia. To support Hyundai Motor Group’s new EV factory Meta Plant America (HMGMA) under construction in North America, Hyundai Mobis is also establishing local production bases for battery systems and PE systems, aiming to start operations in the second half of this year. Recently, it has been constructing a dedicated factory in Spain to supply battery systems for Volkswagen EVs.
The electrification sector has already become a major revenue source for Hyundai Mobis. In the first quarter of this year alone, sales of electrification parts reached 3.3269 trillion KRW, a 76.4% increase compared to the same period last year. This accounts for 22.7% of total quarterly sales. After surpassing 12 trillion KRW in electrification parts sales for the first time last year, the company has continued to show growth. Based on this, Hyundai Mobis plans to achieve core parts orders worth 9.34 billion USD (12.57 trillion KRW) this year from overseas automakers excluding group affiliates Hyundai Motor and Kia.
Lee Hyun-woo, Executive Vice President and Head of Hyundai Mobis Module BU, explained, “We will strengthen collaboration with finished vehicle customers by reliably supplying modules optimized for various upcoming EV models.”
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