The Center of Korea’s Electric Vehicle Production, Pyeongtaek City

To win the biggest competitor Tesla, Pyeongtaek looks for the way to support the EV market in South Korea and Hyundai Mobis

With the age of electric vehicles (EV) dawning ahead, Korea's electric-vehicle battery (EVB) ranked first in the global market, and Hyundai and Kia's EV sales ranked fifth. Although at an early stage of the global EV race, expectations are growing that Korean EVs will improve its standing relative to the previous era of internal combustion engines.

According to the data released on the 21st by the global EV research company EV-Volumes, global EV sales reached over 3.24 million units last year, up 43% from 2.27 million units in 2019. As for sales by country, China accounted for 41% of the total with 1.34 million units being sold, followed by Germany (390,000 units), the US (320,000 units), France (190,000 units), and the UK (180,000 units).

Korea maintained its position as top 10 in the market with 52,000 units sold. In terms of sales by EV manufacturer, Tesla ranked first with 490,000 units, followed by Volkswagen (420,000 units), GM (230,000 units), and Renault-Nissan Alliance (220,000 units), while Hyundai (220,000 units) took fifth place.

An electric vehicle at an EV charging station in Gyeonggi Province
ⓒGyeonggi Province

Hyundai Mobis Pyeongtaek Plant

Hyundai Mobis will build its third plant for EV parts in Pyeongtaek City of Gyeonggi Province, following its existing plants in the cities of Ulsan and Chungju, North Chungcheong Province. Located in the Poseung-eup Business Industry Complex (BIX) of the Gyeonggi Free Economic Zone, the Hyundai Mobis Pyeongtaek Plant will be built on a site of 16,726 m2 (approx. 5,000 pyeong) with an investment of KRW 35.5 billion. 

PE and chassis modules that integrate motors, inverters and decelerators, which are key EV auto parts, will be produced at this plant. The PE module is an auto component that serves as an engine, similar to that used in the previous internal combustion engine vehicles. Such components are experiencing surges in demand as the types of vehicles have continued to increase in recent years. Hyundai Mobis plans to secure a production capacity of 150,000 units next year and to expand its facilities for the supply of up to 300,000 PE modules by 2026.

Hyundai Mobis is the largest auto component affiliate of Hyundai Motor Group, which aims to produce 1 million electric vehicles by 2025. Starting with a plant dedicated to key electric motor parts built in Chungju, North Chungcheong Province, in 2013, Hyundai Mobis subsequently built its second plant in Chungju in 2018. The Chungju Plant acts as a forward base that primarily produces components for fuel cell EVs. Last year, the company started construction of a plant entirely dedicated to batteries and other key EV auto parts in Ulsan. This plant will produce EV auto parts for Hyundai and Hyundai Genesis.

As a result, Hyundai Mobis will build three production hubs for eco-friendly vehicles, connecting Pyeongtaek, Chungju and Ulsan. The company seeks to lead the way in the future automotive market. Hyundai Mobis will also continue to make solid investments in research and development. The company is particularly focused on developing chassis modules and other specialized components for autonomous vehicles and EVs. Despite the uncertain business environment, Hyundai Mobis has already spent 50% of its planned R&D expenditures early this year, and recently announced plans to invest KRW 300 billion in the development of the Uiwang Research Institute as a R&D hub specializing in future module projects.