In a notable development, Hyundai Mobis, a South Korean automotive supplier under the Hyundai Motor Group umbrella, has clinched a major contract with Volkswagen. The agreement involves the delivery of ‘Battery System Assembly (BSA)’ for Volkswagen’s forthcoming generation of electric vehicles.
The exact magnitude of the order has not been disclosed by the partnering companies thus far. Nonetheless, Hyundai Mobis has revealed its intention to establish a dedicated manufacturing facility close to Volkswagen’s manufacturing plants in Spain later this year. This facility will cater to the production of battery systems, following the requisite board approvals. While Hyundai Mobis refrains from divulging intricate specifics, the geographical location provides a hint about the specific vehicle models the new battery systems will be destined for. This pertains to the range of compact electric cars built upon Volkswagen’s MEB Entry platform, slated for production at the Martorell (including VW ID.2 and Cupra Raval) and Pamplona (encompassing VW ID.2 X and a Skoda derivative) plants, commencing in 2025.
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Volkswagen has publicly disclosed its ambition to manufacture a substantial three million compact electric vehicles within its Spanish facilities between 2025 and 2030. Notably, Seat, a subsidiary of Volkswagen, is injecting a substantial three billion euros into the Martorell plant’s transformation near Barcelona to facilitate this endeavor. Curiously, Seat has also allocated a noteworthy 300 million euros for battery assembly activities at the site. Consequently, it can be inferred that Hyundai Mobis might exclusively furnish batteries for models originating from the Pamplona plant. The supply of battery cells is entrusted to PowerCo’s establishment in Sagunt, near Valencia, which has been under construction since March 2023.
The comprehensive battery systems to be delivered by the South Korean supplier to Volkswagen encompass the battery pack, battery management system, and thermal management components. The press release does not explicitly specify whether this engagement pertains solely to contract production based on Volkswagen’s specifications, or if Hyundai Mobis will additionally partake in developmental services.
Hyundai Mobis underscores the significance of this “significant order for electric vehicle components received from a prominent global automaker.” This achievement is regarded as a testament to the company’s prowess in the large-scale production of electric vehicle parts. It’s noteworthy that Hyundai Mobis boasts over a decade of experience in this domain.
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Notably, Hyundai’s supplier division already operates battery system production facilities in South Korea and the Czech Republic, with the Czech plant focusing on assembling batteries for the Hyundai Kona Electric model. While the forthcoming plant in Spain awaits final approval from the board, plans for new battery system manufacturing units in Indonesia and the United States (Georgia, catering to the extensive Hyundai Metaplant) have already been confirmed. Although the official announcement from Mobis solely references the existing Czech Republic and South Korea facilities, an accompanying map indicates the presence of a Battery System Assembly (BSA) facility in China as well.