Hyundai Mobis, the parts and service arm of Hyundai Motor Group, is set to construct a dedicated electric vehicle module plant in Ulsan, South Korea, with an investment of approximately 90 billion won ($65 million). The plant is expected to be completed by late 2025.
The investment memorandum of understanding was signed with the Ulsan Metropolitan City, with Ulsan Mayor Kim Du-gyeom and Hyundai Mobis CEO Lee Gyu-suk attending the signing ceremony.
The new facility, located near Hyundai Motor Group’s upcoming EV plant in Ulsan, will supply critical modules such as chassis and driver’s seat modules for next-generation electric vehicles. The chassis module, an integral part of the structural system, will integrate lower vehicle functions such as suspension, steering, and braking. It will be delivered as part of a Power Electric (PE) system, which includes an electric motor and an inverter to ensure optimal performance. The driver’s seat module will incorporate systems such as driving information, infotainment, climate control, and safety features like airbags.
This new plant will expand Hyundai Mobis’ domestic manufacturing network, which already includes battery system and PE system plants in cities like Ulsan, Daegu, Chungju, and Pyeongtaek. By maintaining a strong manufacturing presence in these key locations, Hyundai Mobis aims to sustain a stable supply chain for electrification components domestically.
On a global scale, Hyundai Mobis has been expanding its reach by establishing electrification production bases overseas. The company produces battery systems in China and the Czech Republic, and is building a new battery system assembly (BSA) plant in Indonesia. In North America, Hyundai Mobis is developing production facilities for battery and PE systems to serve Hyundai Motor Group’s Meta Plant America, a new electric vehicle factory. The company also has a facility in Alabama that supplies electric vehicle modules to Mercedes-Benz. Furthermore, Hyundai Mobis is constructing a significant battery system factory in Spain, poised to supply Volkswagen with key electrification components.
“Our goal is to support automakers by consistently delivering high-quality, customized modules for their future EV lineups,” said Lee Hyun-woo, executive vice president and head of the module business unit.
The surge in orders from European automakers is driven by intense competition to reduce EV production costs. Chinese manufacturers like BYD are gaining market share with lower-priced models, and Tesla’s focus on market expansion over profitability has triggered a price-cutting race.
To stay competitive, automakers like Volkswagen are outsourcing key EV components, such as BSAs, to specialized suppliers like Hyundai Mobis. The Korean auto parts maker’s track record in supplying BSAs to Hyundai and Kia is considered to have contributed to its growth in the global market.
