Slovakia signs deal with Hyundai Mobis for electric car parts plant

In Slovakia, the government has entered into a memorandum of understanding with South Korea's Hyundai Mobis to establish a new plant dedicated to manufacturing engines and components for electric vehicles. This agreement was signed on a Tuesday, with Prime Minister Robert Fico announcing that the investment from Hyundai Mobis will exceed 170 million euros, equivalent to approximately 185 million dollars. The facility is set to be constructed in Novaky, a town that has historically depended on brown coal mining, which has recently ceased operations due to the closure of all local mines and a coal-fired power plant. The Slovak government is committed to supporting this transition by providing around 26 million euros in incentives to Hyundai Mobis. This initiative is part of a broader strategy to revitalize the region following the decline of coal mining, aiming to foster economic growth and job creation in the area. Slovakia, known for being the largest car producer per capita globally, is home to several major automotive manufacturers, including Volkswagen, Stellantis, Kia Motors, and Jaguar Land Rover. Additionally, the country is set to welcome Volvo Cars, which plans to open an electric vehicle plant in the next two years. This influx of investment in electric vehicle production aligns with global trends towards sustainable transportation and reflects Slovakia's strategic positioning in the automotive industry. Overall, the collaboration with Hyundai Mobis marks a significant step in Slovakia's post-coal transformation, contributing to the development of a greener economy and enhancing the country's automotive manufacturing capabilities.