Hyundai Mobis Company, the main component manufacturing affiliate of South Korea’s Hyundai Motor Group (HMG), has agreed to invest around KRW350bn (US$257m) to build new manufacturing facilities in Slovakia to produce components for battery electric vehicles (BEVs). Slovakia is home to several global automakers including HMG’s Kia Corporation, which is building a dedicated BEV plant in the country.
Hyundai Mobis signed an “Investment Agreement” with the Slovak Government this week at a ceremony held at the Bratislava attended by the country’s Prime Minister Robert Fico and Hyundai Mobis’ President Lee Gyu Suk.
Slovakia will become Hyundai Mobis’ third manufacturing location in Europe for BEV components, with a battery module plant already in operation in the Czech Republic and a similar facility currently under construction in Spain. The company expects European demand for BEVs to rebound in the next two years after a sharp decline in the first half of 2024, while rising protectionism makes it essential to localize production in order to capitalize fully on future BEV demand growth.
Hyundai Mobis confirmed it will invest KRW250m to build a new facility in the Slovakian town of Novaky to produce electric drive (Power Electric) systems, comprising electric motors and inverters. The plant is scheduled to be completed in the second half of 2025 with a production capacity of 300,000 PE systems annually for the European market.
The company said it will also invest over KRW95bn to build new facilities within its existing manufacturing complex in the city of Zilina to produce braking systems and airbags for electric vehicles.
Speaking at the signing ceremony, Lee Gyu Suk said: “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.”
According to local reports, the Robert Fico’s government plans to make available around EUR26m in investment incentives to Hyundai Mobis for the Novaky project, as part of its decarbonization policies.
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