Hyundai Mobis, the core supplier of the Hyundai Motor Group declared a “large-scale order” from Volkswagen recently. The South Korean auto parts behemoth will supply Battery Systems Assemblies (BSA) for VW’s next-generation EV platform.
Hyundai Mobis gain deal with VW for EV components
In particular, the BSA is a fully integrated product that merges the battery management system, battery pack, and other components. This is to ensure safe and efficient operation.
High-efficiency battery systems are a prime EV component that impacts the performance and quality of the vehicle. However, the actual terms of the deal were not revealed. Hyundai Mobis state the “extensive order” from VW is evidence of the company’s competitive edge in the area of mass-producing EV parts.
Volkswagen will integrate the BSA from Hyundai Mobis for its next-generation EV platform. Apart from this, the German automaker has made various agreements lately. This is intended to outsource technology for its future electric vehicles.
While with the circulate of the rumors, Audi and Chinese state-owned automaker SAIC Motor declared an association in late July in order to develop new EVs and expand the brand in the region in a speedy manner.
In a very short span of time, Volkswagen disclosed a $700M investment for a nearly 5% stake in XPeng Motors. At the same time, VM plans to come up with two new electric models based on XPeng’s Edward platform, used for the G9.
Hyundai Mobis aims to build a new production site
While, after receiving board approval by the end of the year, Hyundai Mobis aims to build a new production site near an automotive plant in Spain to supply the BSAs to VW. Currently, Mobis has BSA production lines in Korea and the Czech Republic. This is along with new EV hubs that are being developed in the US and Indonesia.
Hyundai Mobis predicts extra orders for EV components globally, as per the “sizable overseas contract” from VW. On the other hand, the supplier has been planning for the transition to EVs for 10 years. The company thinks of this with the opening of its Chungju Plant, a dedicated facility for xEV components, in 2013.
When it comes to numbers then presently the auto supplier earns approximately 90% of sales from Hyundai Motor and Kia. While, 10% comes from other automakers that comprise GM, Stellantis, and Geely.