Hyundai Mobis to spend $260 million on EV parts factories in Slovakia

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Hyundai Mobis to spend $260 million on EV parts factories in Slovakia

Published: 16 Oct. 2024, 16:09 Updated: 16 Oct. 2024, 16:32

SARAH CHEA
chea.sarah@joongang.co.kr

Hyundai Mobis CEO Lee Gyu-suk, left, and Slovak Prime Minister Robert Fico attend the signing ceremony for building EV parts factories in the European country at the Slovak Government Office on Tuesday. [HYUNDAI MOBIS]

Hyundai Mobis will invest 350 billion won ($260 million) in building new EV parts factories in Slovakia as the Korean auto parts maker rushes to lure European automakers as clients.

Mobis and the Slovak government inked an agreement Tuesday promising the investment, with around 250 billion won allocated to a power electric (PE) system factory and the remainder to an electronic brake system plant.

A rendered image of Hyundai Mobis' power electric system in Slovakia. [HYUNDAI MOBIS]

A PE system, which describes the drivetrain of an electric vehicle, is composed of an electric motor and an inverter to perform optimal work.

The PE system plant, which will be located on a 105,700-square-meter (346,785-square-foot) site in Novaky, Slovakia, is planned to start production in the second half of next year, with 300,000 units of annual production capacity.

Hyundai Mobis will also construct an electronic brake system and airbag factories in Zilina, Slovakia, where it already owns a parts plant.

Having first formed the Slovak subsidiary in 2004, Hyundai Mobis is expanding its global network in the European country, where many manufacturing plants of global automakers are located including those of Kia, Volkswagen, Stellantis and JLR. Volvo Cars is also building an EV facility in Slovakia.

“With the support of the Slovak government, we will expand our electrification business in Central Europe, centered on the new PE system plant in Novaky,” said Hyundai Mobis CEO Lee Gyu-suk.

BY SARAH CHEA [chea.sarah@joongang.co.kr]