Hyundai Mobis Breaks Ground on Electric Vehicle Battery Factory in Spain

Hyundai Mobis, a major automotive parts supplier, held a groundbreaking ceremony on April 23, 2024, for its first electric vehicle (EV) battery factory in Western Europe. The new facility, located in Navarre, Spain, is expected to begin operations in 2026 and will produce batteries for Hyundai, Kia, and Volkswagen EVs.

The factory will cover an area of 150,000 square meters, with a floor space of 50,000 square meters, and will have the capacity to produce up to 360,000 battery system assemblies annually. Hyundai Mobis plans to invest a total of 170 billion won ($124 million) in the factory by 2030, developing advanced electrification construction technologies for enhanced efficiency.

Why this matters: The establishment of this factory aligns with Hyundai Mobis' business strategies, focusing on electrification and the expansion of global orders. The new plant is a significant strategic entry for Hyundai Mobis into the western European market, as the company aims to reduce its dependence on the Hyundai group and secure Volkswagen as a key global customer.

In 2023, Hyundai Mobis secured a contract with Volkswagen for the large-scale production of battery system assemblies, and the battery system assemblies produced in the Spain factory will be installed in Volkswagen's next-generation electric vehicle platforms. The factory will feature advanced technical and logistical capabilities, as well as stringent environmental and quality certifications.

The groundbreaking ceremony was attended by over 100 people, including the Governor of Navarra and representatives from Hyundai Mobis and Volkswagen. "The new plant in Spain is a key part of our strategy to expand our EV battery production capabilities and meet the growing demand for electric vehicles in Europe," said a Hyundai Mobis spokesperson.

Hyundai Mobis is targeting an average annual sales growth of 30% in the European market through 2030 on demand for its core electrification technologies. The company aims to become a leading global supplier of EV batteries and components as the automotive industry continues to shift towards electrification.

Key Takeaways

• Hyundai Mobis to build first EV battery factory in Western Europe in Spain by 2026.
• Factory to produce batteries for Hyundai, Kia, and Volkswagen EVs with 360,000 annual capacity.
• Hyundai Mobis to invest $124M by 2030 to develop advanced electrification technologies.
• Factory to supply battery system assemblies for Volkswagen's next-gen EV platforms.
• Hyundai Mobis targets 30% annual sales growth in Europe through 2030 for EV components.