Hyundai Mobis, a significant supplier for Hyundai Motor Group, has announced an investment of approximately €235 million to establish new production facilities in Slovakia. The move aims to expand the South Korean partners’ presence in the European electric vehicle (EV) market, the second-largest globally. The new plant will focus on producing key EV components, including electric power and brake systems.
The new production base will be located in Novaky, Slovakia, and will span over 26 acres (105,700 square meters). Hyundai Mobis aims to have the facility operational by the second half of 2025, with a projected annual production capacity of 300,000 power electric systems.
These are critical to the functioning of electric vehicles, integrating the electric motor, inverter, and reducer. The company’s existing facility in Zilina will be expanded to manufacture advanced EV braking systems.
Not exclusively Hyundai
This expansion must further strengthen Hyundai Mobis’s position as a global leader in EV component manufacturing. The company, the fifth-largest auto parts maker in the world, doesn’t exclusively supply key parts to Hyundai but also to other automakers like Volkswagen and Mercedes-Benz.
The construction of the new plant must enable the supplier to meet growing demand from European automakers, including Volkswagen, with which it secured a major contract last year for next-generation EVs.
The decision is remarkable as Europe is navigating a tide of paused or aborted investments in EV and battery production due to a weak outlook. In a press release, Hyundai Mobis described the new plant as a “key bridgehead for conquering the European electrification market.”
Hyundai Mobis remains optimistic about the steady growth of Europe’s electric vehicle market. The investment reflects its long-term vision of becoming a leading supplier of EV components in the EU, even amid short-term market fluctuations.
Slovakia: new center for EV production
With the new parts plan, Slovakia keeps growing its automotive industry presence. The country is home to major automakers like Kia, Volkswagen, Stellantis, and Jaguar Land Rover. Also, Volvo Cars is set to open an electric car plant in the coming years for its next-generation electric cars. The recent construction of these greenfields brings a suction effect to peripheral operations, as suppliers want to produce nearby their customers.
The Slovak government has strongly supported the project, offering around $28 million in incentives. This political initiative aligns with the country’s efforts to transition away from its coal-based economy and embrace a future-proof industry focusing on clean technologies.
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