The Slovak government and Hyundai Mobis have formalized an agreement through a memorandum of understanding (MoU) to establish a new plant for electric vehicle (EV) parts production. The South Korean company intends to construct the facility in Novaky, Slovakia, where it will produce engines and essential components for electric vehicles.
Hyundai Mobis, a global automotive parts maker that plans to invest approximately 350 billion won ($256.2 million) in this project. The new plant, with an estimated cost of 250 billion won, will focus on producing power electric (PE) systems, a crucial component for EVs, as part of the company’s expansion into Europe’s growing electric vehicle market.
Prime Minister Robert Fico announced that Hyundai Mobis will invest over 170 million euros ($185 million) to establish the electric vehicle parts plant in Novaky, located in western Slovakia. This investment marks a significant step in the region’s post-coal transformation, as Novaky was historically dependent on brown coal mining, and its coal-fired power plant recently shut down. The Slovak government is set to provide 26 million euros ($28 million) in incentives to support the project.
In addition to the Novaky facility, Hyundai Mobis also plans to invest 95 billion won in a new factory for electric vehicle braking systems, to be built within its existing production complex in Žilina, located in the north-western region of Slovakia. These new plants will enhance the company’s ability to supply key electric vehicle components across Europe, where demand for eco-friendly vehicles continues to grow.
The Novaky plant, which will span approximately 105,700 square meters, is expected to be completed by the second half of 2025. It will have the capacity to produce up to 300,000 power electric (PE) systems annually, further strengthening Hyundai Mobis’ foothold in Europe’s rapidly expanding electric vehicle market. The company already operates battery system production bases in the Czech Republic and is constructing another in Spain.
Hyundai Mobis CEO Lee Gyu-suk emphasized the strategic importance of the Slovak plant, which will serve as a central hub for the company’s electrification efforts in Europe.
The new facility is expected to expand its presence in Central Europe, a region that hosts production plants for major automakers like Volkswagen, Stellantis, and Kia.
Slovakia, a key hub for automotive manufacturing, already hosts major plants from global carmakers, including Volkswagen, Stellantis, Kia Motors, and Jaguar Land Rover. Volvo Cars is also set to join this lineup with plans to open an electric car plant in the country within two years. This strategic location, combined with government support, makes Slovakia an attractive destination for Hyundai Mobis’ expansion into Europe’s EV market.
Hyundai Mobis is focusing on expanding its electrification bases both in Europe and globally, anticipating a recovery in the EV industry after a recent slowdown. The company is also set to open new battery system assembly (BSA) and PE system facilities in Alabama later this year, following the successful launch of its BSA factory in Indonesia in 2023.
