Hyundai Mobis to Build Third Electric Vehicle Parts Factory in Pyeongtaek, Gyeonggi

Investment Agreement Worth 35.5 Billion KRW Signed at Gyeonggi Provincial Office on 26th
Third Dedicated Electric Vehicle Parts Factory Following Chungju and Ulsan
Located Near Kia Hwaseong Plant with Improved Logistics Accessibility
Annual Production of 150,000 Electric Vehicle PE Modules

[Asia Economy Reporter Suyeon Woo] Hyundai Mobis is building its third domestic eco-friendly vehicle core parts factory in Pyeongtaek, Gyeonggi-do, following its plants in Chungju and Ulsan.

On the afternoon of the 26th, Hyundai Mobis announced that it signed an investment agreement for the establishment of the factory at the Gyeonggi Provincial Government Office in Suwon, Gyeonggi-do, with the attendance of Lee Jae-myung, Governor of Gyeonggi Province, Jeong Jang-seon, Mayor of Pyeongtaek, and Park Jeong-guk, President of Hyundai Mobis.

The new Pyeongtaek plant is located in the Pyeongtaek Poseung district within the Yellow Sea Free Economic Zone, covering an area of 16,726㎡ (approximately 5,000 pyeong). Hyundai Mobis will invest 35.5 billion KRW and begin construction in September, with plans to mass-produce electric vehicle-exclusive module parts equivalent to 150,000 units annually from the second half of next year at the Pyeongtaek plant.

Hyundai Mobis’s investment in the Pyeongtaek plant aligns with Mobis’s future vehicle response strategy, which has led the electric vehicle core parts market despite unpredictable global business environments such as the COVID-19 pandemic. Hyundai Mobis expects that proactive investment will enable it to respond to the paradigm shift toward electrified vehicles and secure competitiveness in future vehicles.

With this, Hyundai Mobis has established three major eco-friendly vehicle core parts production bases connecting Pyeongtaek, Chungju, and Ulsan, preparing a lineup to lead the future vehicle market. To localize eco-friendly vehicle core parts and build a large-scale mass production system, Hyundai Mobis started the dedicated electrification core parts plant in Chungju in 2013, followed by the Chungju 2nd plant in 2018, and began construction of the electric vehicle core parts dedicated plant in Ulsan last year.

The new Pyeongtaek plant is the first electric vehicle parts factory to be established in the metropolitan area. Additionally, it has secured logistics accessibility, being only about 13 km away from Kia Motors’ Hwaseong plant, a complete vehicle factory.

Hyundai Mobis Second Eco-Friendly Parts Ulsan Plant Bird's-Eye View / Photo by Hyundai Mobis

Hyundai Mobis plans to produce and supply PE modules, which integrate core electric vehicle parts (motors, inverters, reducers, etc.), and chassis modules (front and rear vehicle underbody parts) at the Pyeongtaek plant. The PE module is a core part optimized for electric vehicle-exclusive models, serving as the driving component that replaces the engine role in conventional internal combustion vehicles, and demand has surged recently due to an increase in vehicle models. Hyundai Mobis will first secure a production capacity of 150,000 units next year and plans to expand facilities to supply up to nearly 300,000 PE modules by 2026.

Jung Jeong-hwan, Executive Director of Hyundai Mobis Module BU, explained, "With the expansion of the global electric vehicle market, we will develop the plant into a smart factory equipped with flexible production systems applicable to each segment and the latest facilities to lead industry standards."

Research and development investment necessary for producing core electric vehicle parts will also be continuously strengthened. In particular, efforts are focused on developing chassis modules and smart cabin (interior) platforms specialized for autonomous driving and electric vehicles. Earlier, Hyundai Mobis executed about 50% of the R&D investment planned for early this year during the first half of the year, and recently announced a 300 billion KRW investment plan to develop the Uiwang Research Center in Gyeonggi-do as a research and development hub specialized in electrification and future module business.

This content was produced with the assistance of AI translation services.