Hyundai Mobis sets up new electrification business in Ohio

[Photo by Yonhap]

South Korea’s Hyundai Mobis launched a new subsidiary focused on electrification parts in Toledo, Ohio. The new entity, MOBIS US Electrified Powertrain LLC, was founded in March 2024 and is a strategic move to bolster the company’s presence in the North American electric vehicle (EV) market.

According to industry sources on Thursday, the new subsidiary is separate from the car parts supplier’s existing North American division, MOBIS North America, which primarily handles internal combustion engine (ICE) components. The newest organization aims to formulate strategies for the North American electrification market and enhance local responsiveness, a company official said.

Hyundai Mobis is intensifying efforts to supply key electrification products, such as Battery System Assemblies (BSA) and Power Electric (PE) systems, to American automakers. The BSA packages EV batteries sourced from battery manufacturers into modules that can be installed in EVs, while the PE system encompasses the electric motors and related components that drive EVs.

Hyundai Mobis achieved a significant milestone in August 2023 by securing a BSA supply contract with Volkswagen, marking its first deal with an overseas automaker. However, most of its supply remains within Hyundai Motor Group’s vehicle lineup.

Toledo, the location of the new subsidiary, is a strategic choice given its automotive heritage. It is home to Jeep, a Stellantis subsidiary that manufactures popular models like the Jeep Wrangler, Gladiator pickup truck, and the Wagoneer SUV at its Toledo Assembly Complex. General Motors operates a driveline component manufacturing facility in this area and is currently transitioning to produce EV driveline components.

Hyundai Mobis has been supplying chassis modules for Jeep’s ICE models from its Toledo plant since the mid-2000s. The Korean company aims to carve out a significant role in supplying electrification components to major American car brands via MOBIS US Electrified Powertrain.