In a move to bolster its global presence in the electrification business, Hyundai Mobis has secured $940 million in funding to establish a new electrification hub in North America.
This investment, obtained through seven international financial institutions, represents the company's first overseas Green Loan and will support the construction of new Battery System Assembly (BSA) and PE System factories in four strategic locations across North America.
This funding aligns with Hyundai Mobis's broader $1.3 billion plan, unveiled in October 2022, to establish new electrification production hubs in North America. By expanding its manufacturing capabilities in this key region, Hyundai Mobis aims to proactively respond to the burgeoning demand for electric vehicles and solidify its position as a leading supplier of electrification components.
The company's decision to utilize a Green Loan, a financing mechanism specifically designed for eco-friendly projects, underscores its commitment to environmental sustainability. This approach not only aligns with global financial institutions' emphasis on ESG (Environmental, Social, and Governance) principles but also enhances Hyundai Mobis's eco-friendly image.
Hyundai Mobis's expansion plans extend beyond North America. The company currently operates electrification production hubs in nine locations globally, with six domestic and three overseas facilities. To further strengthen its global competitiveness, Hyundai Mobis is establishing six new electrification production hubs in South Korea, North America, and Indonesia.
This comprehensive strategy reflects Hyundai Mobis's dedication to becoming a future mobility technology specialist. By selectively focusing on high-growth areas within the electrification sector, Hyundai Mobis positions itself to secure mid- to long-term growth engines and maintain its leadership in the evolving mobility landscape.