Hyundai Mobis, an affiliate of Hyundai Motor, has revealed plans to construct a new battery system plant in Spain, a move seen as a strategic entry into Western Europe’s automotive market. The facility will serve as a dedicated plant supplying Volkswagen, a key global client.
The decision to establish the plant in Spain is in line with Hyundai Mobis’s broader strategic goals related to ‘electrification’ and ‘expansion of global orders.’ Currently, the company operates battery system production facilities in Korea, China, and the Czech Republic, with additional facilities under construction in the USA and Indonesia.
Jung In-bo, head of the Spanish electrification plant of Mobis, highlighted the company’s commitment to its clients, stating, “We are committed to being a long-term partner through stable auto component supplies, and we will strive to diversify our supply base in Europe, including supplying upcoming models for our client.”
The investment in the Spanish plant is substantial, with plans to invest 170 billion KRW (approximately 120 million Euro, excluding land and facility costs) by 2030. The facility will focus on producing high-capacity and efficient battery systems, which are crucial for the quality and performance of electric vehicles.
The Spanish factory, spanning approximately 150,000 square meters with a building area of 50,000 square meters, is expected to produce up to 360,000 battery systems annually. These batteries will be installed in Volkswagen’s next-generation electric vehicle platforms manufactured at a factory located 14 kilometers away in Pamplona.
Navarre, where the factory is located, is strategically positioned as a bridgehead for entry into mainland Europe, bordering France. It is known as Europe’s second-largest automotive manufacturing base after Germany and is strategically located within 2-3 hours of major global automakers and automotive suppliers from Pamplona.
