Hyundai Mobis launches EV drivetrain factory in Slovakia, completing Europe's three-hub electrification network

Hyundai Mobis has begun mass production of PE systems — a key electric vehicle drivetrain component — at its new factory in Slovakia. The launch gives the company its third electrification production base in Europe, following battery system assembly plants in the Czech Republic and Spain, and is accelerating its effort to build a local supply chain targeting European automakers.

Hyundai Mobis held an inauguration ceremony Wednesday (local time) at its new PE system factory in Novaky, Trencin Province, Slovakia. The event was attended by Hyundai Mobis President Lee Kyu-seok, Slovak Prime Minister Robert Fico, Economy Minister Denisa Sakova, Trencin Governor Jaroslav Baska, and other senior Slovak government officials. About 100 others also attended, including EU Commission representatives, customers, suppliers and local media.

A PE system is an integrated electrification drivetrain unit combining an electric motor, inverter and reducer. It is a core component that determines an electric vehicle's driving performance and efficiency, and is often called the "heart" of an EV. This marks the first time Hyundai Mobis has operated a dedicated PE system production facility in Europe.

The Novaky plant sits on a site of about 106,000 square meters with a total floor area of 8,500 square meters — equivalent to 15 football pitches — and is equipped with stator and inverter production lines. Annual production capacity reaches up to 280,000 PE systems. Hyundai Mobis invested about 250 billion won ($182 million) in the facility to build a production base capable of meeting European demand for electrification components.

"We will invest more and work harder to establish the Novaky PE system factory as a core electrification hub in Europe in pursuit of Hyundai Mobis's future vision," President Lee said at the ceremony. "Going forward, global automakers' strategic EV models equipped with Hyundai Mobis PE systems will lead the European electrification market."

With the new plant now operational, Hyundai Mobis has secured its third electrification production base in Europe. The company has produced EV battery systems in the Czech Republic since 2023, and a battery system assembly plant near Pamplona in Spain's Navarra region came online in June. The addition of the Slovak PE system factory means Hyundai Mobis can now supply both battery and drivetrain core components locally within Europe.

A renewed recovery in Europe's EV market also presents an opportunity for Hyundai Mobis. The EU's push through its Industrial Acceleration Act to reinforce a "Made in Europe" approach and restructure automotive supply chains away from Chinese dependence adds further tailwind. Even as European automakers adjust their electrification strategies, the need to secure local supply chains for core components such as batteries and drivetrains is only growing.

Slovakia is considered a key European automotive production hub, home to major global automakers including Kia, Volkswagen, Stellantis and Volvo. Hyundai Mobis plans to develop the Novaky plant into an integrated base capable of supplying electrification core components not only to Hyundai Motor and Kia but also to global customers.

Hyundai Mobis operates electrification production bases across major regions, including Ulsan, Daegu, Chungju and Pyeongtaek in South Korea, as well as the United States, Czech Republic, Spain and Indonesia. Having secured in-house technology and mass production capabilities for EV core components such as battery systems and PE systems, the company expects its competitiveness in winning orders from global automakers to strengthen further.

Europe ranks as the world's second-largest EV market after China. Hyundai Mobis's expansion of production bases across the Czech Republic, Spain and Slovakia is a strategy to improve supply stability in step with European automakers' shift to electrification.

Hyundai Mobis has long grown on the back of stable volumes from Hyundai Motor and Kia, but has recently been accelerating its push to expand its non-affiliate automaker customer base. The company has set a target of raising the share of sales from global customers to 40 percent by 2033.

Hyundai Mobis has already taken concrete steps in that direction. In March, it launched operations at a factory in Kecskemet, Hungary, to supply chassis modules for Mercedes-Benz electric and hybrid vehicles — its first European production base dedicated to supplying a global automaker.

The European expansion is also showing up in earnings. Hyundai Mobis posted European sales of 4.84 trillion won in the first half of this year, up 9.3 percent from the same period a year earlier. Cumulative orders from Europe and India reached $244 million, already surpassing the annual order totals of each of the past two years.