Exclusive: Hyundai Mobis in talks with Volkswagen-owned Scout on multibillion-dollar deal

Hyundai Mobis is in talks with Scout Motors, an EV brand under the Volkswagen Group, for a multibillion-dollar EV battery system deal, according to multiple sources familiar with the matter.

Hyundai Mobis's battery system assembly plant for Volkswagen in Pamplona, Spain [HYUNDAI MOBIS]

Hyundai Mobis is in talks with Scout Motors, an EV brand under the Volkswagen Group, for a multibillion-dollar EV battery system deal, according to multiple sources familiar with the matter.

It could mark the first large-scale order by a North American automaker for the Korean auto parts maker, which owns 22 percent of Hyundai Motor. The potential deal could help reduce its reliance on Hyundai and Kia, which together currently account for roughly 60 percent of its sales.

“The supply of battery system assemblies [BSA] to Scout Motors is scheduled to start in early 2028,” said a source who requested anonymity due to the confidentiality of the deal, who added that the deal could be worth billions of dollars, making it Mobis’s largest single order from an overseas auto brand.

Another source with knowledge of the matter also added that Hyundai Mobis is expected to build its “own battery system plant in South Carolina,” near Scout Motors’ manufacturing plant, should the deal be finalized.

The Korean firm, however, declined to confirm, citing confidentiality clauses in contracts with all clients.

The battery system assembly is a core component of EVs, integrating the battery pack with the battery management system and key electronic modules into a single unit. High-capacity, high-efficiency assemblies are tied directly to an EV’s overall quality and performance.

Scout Motors is an EV-dedicated brand specifically targeting the U.S. market that was revived by Volkswagen Group in 2022, specializing in off-road electric trucks and SUVs.

Volkswagen acquired the rights to the Scout name, originally used by International Harvester in the 1960s for a line of off-road SUVs and pickup trucks.

The German automaker has since pledged to invest about $2 billion to build a plant in South Carolina and nurture Scout into a wholly U.S. EV brand, overseeing design, engineering, manufacturing and marketing domestically.

Scout Motors plans to launch the Traveler, an SUV, and the Terra pickup truck in late 2027 or early 2028. Both models will be offered as fully electric vehicles as well as extended-range electric vehicles. The company recently said refundable preorders for the two models surpassed 50,000.

Hyundai Mobis booth is crowded with visitors at the CES 2025 in Las Vegas in January. [HYUNDAI MOBIS]

Hyundai Mobis has recently been intensifying its push to lure global brands as clients in an effort to reduce its reliance on affiliated automakers.

Mobis in 2022 landed a large-scale chassis module contract from Mercedes-Benz, followed in 2023 by a battery system deal valued at about 5 trillion won ($3.4 billion) from Volkswagen.

Still, overseas order momentum has weakened amid a slowdown in global EV demand and the impact of tariffs under the Donald Trump administration.

Mobis’ noncaptive orders, or orders outside of affiliates, reached a record $9.22 billion in 2023, but plunged to $2.57 billion in 2024. In 2025, tariff-related headwinds further weighed on performance, with orders totaling $2.31 billion through the third quarter, just 31 percent of the full-year target of $7.45 billion.

BY SARAH CHEA [chea.sarah@joongang.co.kr]