Slovak government and South Korea's Hyundai Mobis sign a deal to build an electric car parts plant

[October 15, 2024]  BRATISLAVA, Slovakia (AP) — The Slovak government and Hyundai Mobis on Tuesday signed a memorandum of understanding on the South Korean company’s plan to build a plant for engines and other parts for electric cars in Slovakia.  

Prime Minister Robert Fico said Hyundai Mobis will invest over 170 million euros ($185 million) in the plant, to be built in Novaky in western Slovakia.

The town is located in a region that relied for decades on brown coal mining until all the mines shut down recently and a major coal-fired power plant in Novaky was closed.

Fico said his government will provide some 26 million euros ($28 million) in incentives to the company for the project that should contribute to the post-coal transformation of the region.

Slovakia is the biggest carmaker per capita in the world.

Germany’s Volkswagen; multinational Stellantis, previously known as PSA; South Korea’s Kia Motors Corp.; and U.K.-based Jaguar Land Rover already have major plants in Slovakia, a Central European country of 5.5 million people.

Swedish luxury vehicle maker Volvo Cars plans to open an electric car plant in Slovakia in two years.

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