Hyundai Mobis to build electric car component plant in Slovakia

South Korean company Hyundai Mobis is planning to invest more than €170 million to build a new plant in Nováky, western Slovakia, which will produce components primarily for electric cars, reports the Sme daily. Mobis supplies its products to Hyundai Motors Czech, Kia Slovakia and Stellantis.

In addition, the project is set to create 281 job positions in the region that saw its coal mine closed at the end of last year, with thousands of people from Nováky and Prievidza working in the local mining industry.

"The transformation of this region requires that we find a meaningful alternative for people who have lost their jobs," said Slovak Prime Minister Robert Fico. The Premier promised the South Korean company that the government would take all measures to ensure that the future plant will have it's requirements for a skilled workforce satisfied. In addition to training of high school graduates, there will also be opportunities for employees from abroad.

The investment will not be without conditions. "The government will make a decision to support the project in the form of an income tax relief of approximately €26 million," the prime minister confirmed.

According to published documents, the new plant is to produce electric drive systems powering vehicles for Kia Motors Slovakia and Hyundai Assan in Turkey, among other components. In addition, the plant will also start supplying Hyundai Motors Czech Republic. In the initial phase, half of output will be shipped to Kia Slovakia and the other half to Hyundai Assan. Production should begin in December 2025, and the plant should reach full planned capacity in January 2027.

According to Hyundai Mobis CEO and President Lee Gyu Suk, the company also plans to expand its plant near Žilina, northern Slovakia, right next to the Kia plant. The former should provide new job opportunities for 350 people.

The plans for the powerplant come on the heels of Slovakia and South Korea signing a memorandum of understanding in late September, in which they pledged to deepen bilateral ties in carbon-free energy sectors. A South Korean company is also planning to bid on the project to build a new nuclear power unit at the Jaslovské Bohunice power plant in western Slovakia.