Hyundai Mobis Co., South Korea’s top auto parts manufacturer, declared on Wednesday that it has been chosen to supply a key electric vehicle component to Volkswagen AG for their next-generation EV platform.
According to the agreement, Hyundai Mobis will offer battery supply assembly (BSA) parts to Volkswagen. The parts will be produced in a manufacturing facility in Spain and delivered to the German carmaker’s adjacent plant.
No further details were given, such as the value of the contract, the amount of BSA components to be supplied, the timeframe for the delivery, or other information.
BSA is a product that combines a battery pack with the battery management system (BMS) and other components to ensure the safe and efficient operation of the battery in an EV.
Hyundai Mobis maintains BSA plants in South Korea and the Czech Republic and is constructing EV parts factories in the United States and Indonesia.
The company is a major affiliate of Hyundai Motor Group, which also includes Hyundai Motor Co. and Kia Corp. Hyundai Mobis holds a 21.43 percent stake in Hyundai Motor.
It earns around 90 percent of its revenue from Hyundai Motor and Kia, with the remaining 10 percent coming from other carmakers.
It has secured $2.71 billion worth of orders so far this year from global carmakers, excluding its captive buyers Hyundai Motor and Kia, achieving half of its annual order target of $5.36 billion from non-captive overseas customers.
The annual goal is higher than the $4.65 billion worth of orders obtained last year.
From January to June, its net profit increased 37 percent to 1.774 trillion won from 1.291 trillion won during the same period of last year, due to increased sales of high-margin EV components.