On Tuesday, the Slovak government and Hyundai Mobis signed a memorandum of understanding for the construction of a plant in Novaky, Slovakia, dedicated to producing engines and other components for electric cars. The South Korean company is set to invest more than 170 million euros ($185 million) in this endeavor.
Novaky, situated in western Slovakia, was historically reliant on brown coal mining until the recent closure of all mines and a significant coal-fired power plant in the area. In a bid to support the region's transition away from coal, Prime Minister Robert Fico announced that the government would offer approximately 26 million euros ($28 million) in incentives to Hyundai Mobis for the project.
Slovakia, known as the largest car manufacturer per capita globally, already hosts major plants for prominent automotive companies such as Germany's Volkswagen, multinational Stellantis (formerly known as PSA), South Korea's Kia Motors Corp., and U.K.-based Jaguar Land Rover.
Adding to this automotive landscape, Swedish luxury carmaker Volvo Cars has disclosed plans to establish an electric car plant in Slovakia within the next two years. This move further solidifies Slovakia's position as a key player in the automotive industry, attracting significant investments and contributing to the country's economic development.
