Hyundai Mobis signs investment agreement with Slovak government to establish new electrification plant

• Hyundai Mobis to establish its first European PE system production base in Novaky, Slovakia; investment agreement signed on the 15^th.
• Plant will have an annual production capacity of 300,000 units, with completion targeted for the second half of next year.

SEOUL, South Korea, Oct. 16, 2024 /PRNewswire/ -- Hyundai Mobis (KRX: 012330), is expanding its electrification business for global automakers 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.

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.

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."

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 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.