Dive Brief:
- Hyundai Mobis will supply Volkswagen AG with battery assemblies for its next-generation electric vehicle platform, Mobis said Wednesday.
- The battery assemblies will be built by Mobis at a new factory in Spain near a Volkswagen assembly plant.
- Mobis expects more orders for EV components to follow now that it’s landed a supplier agreement with Europe’s largest automaker.
Dive Insight:
Major automakers are relying on the expertise of suppliers for EV components. In 2022, Mobis secured $4.7 billion in orders from global automakers.
The high-capacity battery system assembly supplied by Mobis integrates the battery pack and battery management system and other electrical components, such as the electric drive units and the integrated charging control units that serve as the core foundation for EVs.
Mobis is the parts and service arm for Hyundai and Kia. The company has factories in Alabama, Michigan and Ohio that produce automotive components.
The battery system supply deal with Mobis follows Volkswagen’s $700 million strategic investment in Chinese automaker Xpeng announced last month. Xpeng and Volkswagen will jointly develop two battery electric vehicles for China, which will be sold under the Volkswagen brand and built on Xpeng’s G9 EV platform. The companies expect production to start in 2026.
Volkwagen also has developed an in-house EV platform for its vehicles. The MEB platform includes the battery, electric drivetrain and suspension components that can be shared among different models to produce battery-powered vehicles at scale.
