Agreement on Investment in Electrification New Plant with Slovak Government
Annual Production of 300,000 Units · Completion Target in Second Half of Next Year
Hyundai Mobis has decided to directly produce the power electric (PE) system, one of the core components of electric vehicles, in Europe. This move is intended to proactively secure a local production base, viewing electrification as the right direction in the mid to long term. The company also considered supplying not only Hyundai Motor and Kia but also overseas automakers.
On the 15th (local time), Hyundai Mobis President Lee Gyu-seok signed an investment agreement with Slovak Prime Minister Robert Fico at the Prime Minister's residence in Bratislava, the capital of Slovakia, the company announced. According to this agreement, Mobis will build a new PE system factory in the Novaky area of Slovakia. The PE system is a key electric vehicle drivetrain component that integrates the electric motor, inverter, and reducer.
Hyun Kyu-seok, President of Hyundai Mobis (left), is announcing the details of the investment agreement with Robert Fico, Prime Minister of Slovakia, at the Slovak Prime Minister's residence on the 15th (local time). [Photo by Hyundai Mobis]
Hyundai Mobis will produce the PE system for Hyundai Motor and Kia electric vehicles. This is the first time a PE system factory is being built in Europe. Previously, parts factories have been operated or constructed in the Czech Republic and Spain, both producing battery systems (BSA). The company explained, "Although protectionism within Europe has intensified and automakers are adjusting the pace of electric vehicle production, we decided to invest as a proactive measure to expand global electrification business opportunities through localization strategies."
The new PE system factory will be built on a 105,700㎡ site, equivalent to the size of 14 soccer fields, with an investment of 250 billion KRW. Once completed in the second half of next year, it will produce PE systems with an annual capacity of 300,000 units. Additionally, a new brake system and airbag factory will be constructed at the existing ?ilina plant in Slovakia, with an investment of 95 billion KRW.
Perspective view of the Power Electric (PE) system factory that Hyundai Mobis plans to build in Slovakia[Photo by Hyundai Mobis]
Slovakia, along with neighboring countries such as the Czech Republic and Hungary, is a region where European automakers have concentrated production plants. Companies such as Kia, Volkswagen, Stellantis, and Jaguar Land Rover operate factories in Slovakia. Volvo is building a dedicated electric vehicle plant. The company stated that it plans to use the new electrification parts base in this highly competitive area as a key foothold to target the European market. The company also operates or is building electric vehicle core parts factories in major hubs such as North America and Indonesia.
Hyundai Mobis President Lee Gyu-seok said, "With the support of the Slovak government, we will expand electrification business opportunities in Central Europe centered on the new PE system factory being constructed in the Novaky area."
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