VW taps Hyundai supplier for battery systems assembly for next-gen EV platform

Hyundai Mobis, Hyundai Motor Group’s core supplier, announced a “large-scale order” from Volkswagen Wednesday. The South Korean auto parts giant will supply Battery Systems Assemblies (BSA) for VW’s next-generation EV platform.

Hyundai Mobis scores deal with VW for EV components

The BSA is a fully integrated product that combines the battery management system, battery pack, and other components to ensure safe and efficient operation.

High-efficiency battery systems are a key EV component that influences the performance and quality of the vehicle.

Although the exact terms of the deal were not disclosed, Hyundai Mobis says the “extensive order” from VW is a testament to the company’s competitive edge in mass-producing EV parts.

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Volkswagen will integrate the BSA from Hyundai Mobis into its next-generation EV platform. The German automaker has made several agreements recently to outsource technology for its future electric vehicles.

After rumors swirled, Audi and Chinese state-owned automaker SAIC Motor confirmed a partnership in late July to develop new EVs and accelerate the brand in the region.

Shortly after, Volkswagen revealed a $700M investment for a nearly 5% stake in XPeng Motors. VW plans to launch two new electric models based on XPeng’s Edward platform, used for the G9.

After receiving board approval by the end of the year, Hyundai Mobis plans to build a new production site near an automotive plant in Spain to supply the BSAs to VW. As of right now, Mobis has BSA production lines in Korea and the Czech Republic, with new EV hubs being established in the US and Indonesia.

Hyundai Mobis expects additional orders for EV components globally, given the “sizable overseas contract” from VW. The supplier has been planning for the transition to EVs for 10 years, with the opening of its Chungju Plant, a dedicated facility for xEV components, in 2013.

Currently, the auto supplier earns roughly 90% of sales from Hyundai Motor and Kia, with 10% coming from other automakers like GM, Stellantis, and Geely.

Electrek’s Take

Although we don’t know the specifics of the deal, Hyundai Mobis repeatedly says it’s a “large-scale,” “sizeable,” and “extensive” order.

After facing software issues and other supply chain hurdles for several years, delaying the launch of its next-generation platforms and electric vehicles, VW is looking outside the company for solutions.

While many automakers and startups are moving to in-house production, Volkswagen is taking the opposite direction by outsourcing.