The high-technology arm of Hyundai, Hyundai Mobis, has already shown the world its capabilities in developing roll-up infotainment screens, informative headlights, and a true crab-walking Ioniq 5 EV. With that in mind, it’s no wonder that Volkswagen chose those Korean engineers to develop and build VWs next-generation battery electric vehicle’s (BEV) battery system assembly (BSA). Though, these assemblies won’t be coming straight from Hyundai Mobis’ headquarters as it will expand its global BSA production in a new market thanks to this new large-scale contract.

It may sound strange at first, but outsourcing something as critical as the battery pack isn’t an unusual move in the OEM space. Modules, components, and other major parts that even a ICE-powered vehicle can’t do without has been the norm for several decades. That’s especially true if another manufacturer is able to supply a critical component for a much cheaper cost than it would for an OEM to build everything from the ground up and even supply itself for several years. That OEM will also not want to just use some overnight production supplier, either, and Hyundai Mobis definitely doesn’t fit that bill. The Korean technology development and manufacturing arm of Hyundai Motor Company has been building EV critical parts for BEVs, hybrids, and plug-in hybrids (PHEVs) for over a decade, and not just for Hyundai.

The Hyundai Mobis built BSA is more than just the battery pack for VWs upcoming next-generation EV. These assemblies will include the power storage component but also the battery management system, cooling and conditioning system, and other components that are required to keep the batteries operational and safe for many years. The first use of these Mobis-built BSAs will most likely be in or around 2026 and on the two upcoming EVs being planned for the Martorell Seat plant and VW’s Navarra plant as well as the new Volkswagen Gigafactory that will be located in Valencia.

This lines up with Hyundai Mobis’ own plans to open a new production plant in Spain. Right now, Hyundai Mobis has BSA production lines in China, Korea, and the Czech Republic with a brand new plant being set up here in the U.S. (which will supply both BSAs and powertrains) and one more in Indonesia. At the moment, Mobis is awaiting board approval to build the plant in the unnamed Spanish location.

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