Hyundai Mobis says it will work with the Volkswagen Group to provide vital electric car parts, including batteries for its dedicated electric platform.

The new venture will see Hyundai Mobis open an additional factory in Spain to supply the Volkswagen Group with an “extensive” number of Battery System Assemblies (BSA), which combine a battery pack and the battery management system (BMS).

Mobis currently has BSA factories in the Czech Republic, China, South Korea, and is building additional factories in the United States and Indonesia.

It’s not clear at this stage if Hyundai’s BSA will be spread across the Volkswagen Group portfolio, or if they’ll be exclusive to Volkswagen brand models.

This isn’t the first time the Volkswagen Group has looked outside its own four walls for technology.

In July 2023, the Volkswagen brand secured a 4.99 per cent stake in, and a seat on the board at, Chinese carmaker XPeng.

The new partnership will allow the pair to co-develop two new Volkswagen-branded electric cars for China.

Volkswagen says in its media release the “China-specific vehicles will supplement the MEB product portfolio and are to be rolled out in 2026”.

Volkswagen AG board member for China Ralf Brandstätter said “local partnerships are an important building block” the Volkswagen Group’s strategy for China.

“With XPeng, we now have another strong partner that is one of the leading manufacturers in China in key technology areas.

In July 2023, Audi and SAIC Motor officially confirmed a partnership on future electric car projects.

The duo are yet to detail what the projects will entail but Volkswagen – parent company of Audi – has said the partnership will “extend the portfolio of fully connected electric vehicles on offer in the premium segment” within China.

Volkswagen claims the co-developed Audi/SAIC vehicles will be equipped with state-of-the-art software and hardware for its Chinese customers.

Both Audi and SAIC have agreed on future co-development of new “for China in China” platforms for the next-generation of internet-connected luxury cars.

“All stakeholders agree that the Chinese auto market is in the midst of the biggest transformation in its history, therefore we will jointly work on a strategic approach that guarantees our future success,” said SAIC Motor in a statement to Automotive News.

It’s unclear if models underpinned by an external architecture will be available throughout the world, or confined to China.

Jade Credentino

Jade Credentino is an automotive journalist currently based in Melbourne, Australia. Jade has had a chance to review a variety of vehicles and particularly enjoys SUVs. She enjoys traveling and going on road trips exploring Australia.

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