Hyundai Mobis (part of the Hyundai Motor Group) announced today that it successfully secured a large-scale overseas contract for EV components from Volkswagen AG.
The agreement is specifically related to Battery System Assembly (BSA), which Hyundai Mobis describes as "a complete product that combines a battery pack with the battery management system (BMS) and other components, to ensure the safe and efficient operation of the battery in an electric vehicle."
According to the South Korean supplier, its BSA will be integrated into Volkswagen's next-generation electric vehicle platform. Not only that. Hyundai Mobis will build a new local production base in Spain, near the customer's plant.
There are no more details, but it sounds to us that the Volkswagen Group has decided to source BSA (essentially battery packs) for its upcoming all-electric models (like the Volkswagen ID.2), based on the MEB Entry platform, from Hyundai Mobis, rather than producing everything in-house. The entry-level BEVs from the Volkswagen Group (Volkswagen, Skoda, Seat/Cupra) were associated with Spain for a long time, and scheduled for 2025.
It's very interesting news and a little bit surprising because large OEMs like the Volkswagen Group and Hyundai Motor Group are usually seen as competitors. On the other hand, after the recent partnership between Audi and SAIC in China, and the purchase of a roughly five percent stake in XPeng, should we be surprised by anything?
It's hard to say for sure, but the Volkswagen Group appears to be adjusting its electrification strategy, with potentially more outsourcing. We also wonder whether it's because of necessity - technological or financial - or just an opportunity. In July, we heard a report that Volkswagen brand CEO Thomas Schafer reportedly said during an internal meeting that “the roof is on fire."
Anyway, it's a big win for Hyundai Mobis, which currently is quickly expanding its BSA manufacturing capacity around the world, including in the United States.
"Mobis plans to establish a new production base near an automobile plant in Spain to supply said BSAs after obtaining board approval within this year. Currently, Mobis operates BSA production lines in Korea and the Czech Republic, with new electric vehicle hubs also being set up in the United States and Indonesia."
"Mobis is known for its portfolio of battery systems that can be applied to all types of green vehicles called xEVs, including hybrids and battery electric cars."
Hyundai Mobis Global Expansion Of Electrification
Hyundai Mobis noted also that it "is expecting additional orders for electric vehicle components in the global market," so there is a chance that we might see more OEMs looking for EV components from the South Korean group.