Hyundai Mobis starts building EV battery system plant in Spain to supply Volkswagen

Hyundai Mobis has begun construction of a new plant in Spain, the heart of Europe's automotive market. Mobis currently operates battery system production facilities in Korea, China, and the Czech Republic and is building several more in the USA, and Indonesia. The new plant in Spain represents a significant strategic entry into Western Europe and will serve as a dedicated facility supplying Volkswagen, one of its global clients. The facility is slated to go into production by 2026. 

The Spanish factory plays a critical role in Mobis's strategic directions of 'electrification' and 'expansion of global orders.' Last year, the company secured a major BSA supply contract with Volkswagen.

BSA refers to the complete product that enables the battery to function safely and efficiently in electric vehicles, integrating electronic components and the Battery Management System (BMS) into the battery pack. High-capacity and efficient battery systems are pivotal in determining the quality and performance of electric vehicles.

Mobis plans to invest 170 billion KRW (around 120 million euros / Rs 1,054 crore), excluding land and facility) by 2030 in the Spanish plant to support this initiative. The factory will also establish state-of-the-art electrification equipment technologies to maximize efficiency. It is intended to serve as a standard model of electrification tailored explicitly for global clients.

The site of the Spanish factory spans approximately 150,000 square metres, equivalent to the size of 21 soccer fields, with a building area of 50,000 square metres. It will produce up to 360,000 battery systems annually. The BSA produced here will be installed in Volkswagen's next-generation electric vehicle platforms manufactured at a factory located 14 kilometres away in Pamplona.

Navarre is located in the northernmost part of Spain, bordering France, and serves as a bridgehead for entry into mainland Europe. Known as Europe's second-largest automotive manufacturing base after Germany, it is strategically located within 2-3 hours of major global automakers and automotive suppliers from Pamplona.

Jung In-bo, the head of the Spanish electrification plant of Mobis, said: "We are committed to being Volkswagen's 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."