Hyundai Mobis, the world’s No. 6 auto parts maker, and Hyundai Motor Group subsidiary, has secured a contract with Volkswagen AG to supply Battery System Assembly for the German automaker’s next generation EVs. BSA is a package 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. Mobis’ battery systems an be applied to all types of electrified vehicles, including hybrids and battery electric cars.

Hyundai Mobis plans to establish a new production facility in Spain to supply the components. As the auto industry increasingly shifts to electrification, establishing operations in Western Europe is strategic. The company expects to secure future agreements for BSA components from other automakers as, according to the company, “global automakers have been making massive investments in transitioning to electric vehicles to secure a leading position in the future mobility market ahead of their competitors.” The Hyundai Motor subsidiary currently operates facilities in Korea, Czechia, the United States, and Indonesia.