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Hyundai Mobis Signs Investment Agreement with Slovak Government to Establish New Electrification Plant

2024.10.16

Hyundai Mobis to establish its first European PE system production base in Novaky, Slovakia; investment agreement signed on the 15th

Plant will have an annual production capacity of 300,000 units, with completion targeted for the second half of next year; follows previous electrification sites in the Czech Republic and Spain



Hyundai Mobis President Lee Gyu Suk (photo: left) and Slovak Prime Minister Robert Fico (photo: right) attended the signing ceremony on the 15th at the Slovak Government Office.


Seoul, Oct. 16th, 2024 : Hyundai Mobis (KRX: 012330), is expanding its electrification business for global automakers, including Hyundai Motor and Kia, by establishing an additional production base for crucial electric vehicle (EV) components in Europe. This will be the company’s third electrification hub in Europe, following existing sites in the Czech Republic and Spain. The move comes in response to rising protectionism and the adjustment of automakers' EV transition pace in Europe, with Hyundai Mobis taking a proactive approach through local investment and market localization to capitalize on global electrification opportunities.
 
On the 16th (local time: 15th), Hyundai Mobis announced that it had signed an investment agreement with the Slovak government to build a new plant to produce a PE system, a key EV component, in Novaky, Slovakia, and construct a factory for electric vehicle braking systems within its existing facility in Zilina. Hyundai Mobis President Lee Gyu Suk and Slovak Prime Minister Robert Fico attended the signing ceremony at the Slovak Government Office in Bratislava. 

Hyundai Mobis is already producing battery systems (BSA) in the Czech Republic and is building a battery system plant in Spain. The new plant in Novaky, Slovakia, will focus on producing PE systems, making it Hyundai Mobis’s first European production base for this key electrification component. PE (Power Electric) systems are integrated drive units that incorporate electric motor and inverter to ensure optimal performance.
 
At the signing ceremony, Hyundai Mobis President Lee Gyu Suk commented, “With the support of the Slovak government, we will expand our electrification business in Central Europe, centered around the new PE system plant in Novaky.” Hyundai Mobis has maintained a strong business partnership with the Slovak government for over 20 years, beginning with establishing its Slovak subsidiary (MSK) in 2004 and constructing a module plant in Zilina.
 
The new Slovak production base will involve an approximately KRW 350 billion investment. The electrification plant will occupy a site of approximately 105,700 square meters (equivalent to 14 soccer fields), with KRW 250 billion dedicated to its construction, which is slated for completion by the second half of next year. Once operational, the plant will have the capacity to produce 300,000 PE systems annually for the European market. An additional KRW of 95 billion will be invested in constructing new facilities for producing braking systems and airbags within the existing Zilina plant.
 
Slovakia is home to several global automakers, including Kia is also building an EV-dedicated plant in the country. Hyundai Mobis plans to leverage its new electrification hub in Slovakia as a strategic foothold for expanding its presence in the European EV market. Despite some global automakers adjusting the pace of their EV transitions, the European EV market, the world’s second-largest after China, is expected to continue its steady growth.
 
In addition to Europe, Hyundai Mobis is expanding its electrification bases in vital strategic regions worldwide. In response to the growing North American EV market, the company plans to begin operating new battery system and PE system production facilities in the region during the second half of this year. Furthermore, the battery system plant in Indonesia, which broke ground last year, began mass production in July. Domestically, Hyundai Mobis has established electrification component production bases in Ulsan, Daegu, Chungju, and Pyeongtaek, strengthening its competitiveness in response to the expanding global EV market. (End)
#mobility#PE#EV#battery#2024

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