Hyundai Mobis opens new EV parts plant in Slovakia

Hyundai Mobis has opened a new plant in Slovakia to produce power electric systems for electric vehicles (EVs), strengthening its production network in Europe amid the region’s growing electrification demand, the auto parts maker said Thursday.

The facility, located in Novaky in western Slovakia, is the Korean auto parts maker’s first PE system plant in Europe and its third electrification production base on the continent. The company already operates battery system assembly plants in the Czech Republic and Spain.

The new plant has an annual production capacity of up to 280,000 PE systems. Power electric systems integrate three major components of an electric powertrain — an electric motor, an inverter and a reduction gear.

Hyundai Mobis invested about 250 billion won ($184 million) in the facility, which occupies a site of about 106,000 square meters.

The plant includes production lines for stators, a core component of electric motors, as well as inverters and other electric powertrain components.

The company said the facility will serve as a regional production hub supplying Hyundai Motor and Kia as well as other global automakers.

The investment comes as Hyundai Mobis seeks to expand its business with global automakers beyond its traditional customer base within Hyundai Motor Group.

The company has been increasing its overseas production capacity and pursuing new orders for EV components, as automakers accelerate their shift toward electrification.

“Looking ahead, strategic models from global automakers equipped with Hyundai Mobis power electric systems will lead the European electrification market,” Hyundai Mobis CEO Lee Gyu-suk said during the opening ceremony of the facility.

Europe is a key target for the company, as it seeks to capitalize on the region’s large EV market and concentration of global automakers. Slovakia, in particular, has emerged as an important production base for the European auto industry, with Kia, Volkswagen, Stellantis and Volvo operating manufacturing facilities in the country.

Hyundai Mobis said locating the new plant in Slovakia will allow it to respond more quickly to customer demand and strengthen its competitiveness in securing new electrification orders from global automakers.

The firm’s European expansion is part of its core strategy to increase the contribution of global customers to its sales. Hyundai Mobis has set a target of raising the share of sales generated from customers outside Hyundai Motor Group to 40 percent by 2033.

“The new facility will help Hyundai Mobis establish a stronger regional supply network and secure more orders for core EV components,” an official from the company said.