Hyundai Mobis is preparing to build its third electric vehicle (EV) parts plant in Pyeongtaek after it built its first and second plants in Chungju and Ulsan respectively.
It is going to invest $28.3 million (33.5 billion KRW) and begin the construction in September. It plans to mass-produce 150,000 PE (Power Electronics) modules that combine motor, inverter, and decelerator annually from the new plant starting from the second half next year.
It signed an investment agreement for the construction at the Gyeonggi-do provincial government building in Suwon-si on Wednesday. The agreement ceremony involved Governor Lee Jae-myeong of Gyeonggi-do, Mayor Jung Chang-seon of Pyeongtaek-si, President Park Jung-guk of Hyundai Mobis and others.
The new plant will be built within the Pyeongtaek Business Industry Complex (BIX) that is within the Yellow Sea Free Economic Zone and it will be only about 13km apart from Kia Motors’ Hwaseong plant. The plant will take up 16,726m2 of land.
Despite unpredictable global business circumstances such as COVID-19, Hyundai Mobis decided to make this investment in order to lead the market for key electric vehicle parts. By investing early, it plans to shift its paradigm to electric vehicle and secure competitive edge in future vehicles.
<Mayor Jung Chang-seon of Pyeongtaek-si (left), Governor Lee Jae-myeong of Gyeonggi-do, and President Park Jung-guk of Hyundai Mobis signed an agreement at the Gyeonggi-do provincial government building that will allow Hyundai Mobis to build a plant for key electric vehicle parts within the Yellow Sea Free Economic Zone.>The new plant will be the first EV parts plant in any metropolitan area. Hyundai Mobis will look to create a triangle-formation by connecting its new plant with its two current pants in Chungju and Ulsan and create synergy in product development and distribution efficiency. Its Pyeongtaek plant is expected to mass-produce PE modules and chassis modules (parts for lower body of front and rear wheel vehicle).
PE module is a driven part that acts as an engine for electric vehicle and it is an important part that is optimized for electric vehicles. There has been an increase in demands for the module due to increased number of electric vehicle models. Hyundai Mobis will first secure a production capacity for 150,000 vehicles annually and gradually increase the capacity to 300,000 vehicles by 2026.
“By securing a flexible production system and state-of-the-art facilities that can be applied as a segment depending on expansion of the global electric vehicle market, we are going to develop the Pyeongtaek plant as a smart factory that can become the standard for the industry.” said Jung Jeong-hwan who is the executive director for Hyundai Mobis Module BU.
Hyundai Mobis will continue to make investments in R&D so that it can lead the market for future vehicles. It is especially focusing on chassis module that is optimized for autonomous driving and electric vehicle and development of smart cabin (internalized) platform. Just in this first half alone, it made 50% of the planned amount of investment. Also, it has invested $278 million (300 billion KRW) in Hyundai Motor Research Institute Uiwang as the R&D base specialized for electrification and future modules.
Staff Reporter Park, Jinhyeong | jin@etnews.com
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