Automotive parts company Hyundai Mobis announced Wednesday that it will supply its Battery System Assembly (BSA) to German legacy automaker Volkswagen.
“It’s the first time that we secured a large-scale order for automation parts with a major global (original equipment manufacturer).”
Hyundai Mobis official
According to the Hyundai Motor Group’s business unit, BSA is a package of a battery pack, battery management system, and other components like thermal management. It can effectively “ensure the safe and efficient operation of the battery in an electric vehicle.”
The announcement further noted that Volkswagen will equip its next-gen electric vehicle models with Hyundai Mobis’ innovative BSA.
In addition, the South Korean supplier also disclosed plans to establish a new production plant near VW’s factory in Spain to facilitate easier and faster operation as early as this year. However, the proposal still needs the board’s approval.
Unfortunately, the companies did not yet reveal the order volume for the BSA. Nonetheless, the planned factory’s location hints at the potential VW models that may feature Hyundai Mobis’ technology.
VW may utilize the ordered BSA for its upcoming MEB Entry platform-based EVs
Hyundai Mobis’ plan to erect a new dedicated factory in Spain suggests that VW Group may utilize its BSA orders for its new MEB Entry platform-based BEV models.
For context, VW aims to produce the all-new VW ID.2 and Cupra Raval at its Martorell plant by 2025. It will also build the VW ID.2 X and a Skoda offshoot at its Pamplona factory in the same year. All these considered, the South Korean supplier’s move to establish a local production base in Spain hints that it is part of the partnership’s strategy to optimize the operation.
See Also:
- Volkswagen confirms $10 billion EV, battery factories to go ahead in Spain
- Volkswagen commences first autonomous driving pilot program in the US
- Volkswagen announces plans to invest €1B in South America by 2026
- Volkswagen BEV sales hit 70,000 globally in Q1 2023
- Volkswagen plans to produce EV batteries in Indonesia, forms partnerships with major companies
As previous reports suggest, VW aims to hit its target of three million compact EV production at its Spanish plants from 2025 to 2030. That said, Hyundai Mobis’ aid will boost its production ramp-up as it will eliminate the need to produce the battery packs internally.
It would be interesting to see which automakers will follow in VW’s footsteps. The South Korean supplier indicated it is still “expecting additional orders for electric vehicle components in the global market.”
