South Korean automotive components manufacturer Hyundai Mobis has agreed to invest US$90bn (US66m) to build a plant in the south of the country for the production of modules for battery electric vehicles (BEVs).

According to local reports, Hyundai Motor Group’s (HMG) main component supplier signed a memorandum of understanding (MoU) this week with the Ulsan municipal government to build a new factory close to where the automaker is currently building a new dedicated battery electric vehicle (BEV) plant.

Hyundai Mobis plans to complete construction of the new factory in the second half of 2025 to produce chassis modules, driver seat modules and other components for BEVs to be produced at HMG’s new vehicle assembly plant.

Last November, HMG held a groundbreaking ceremony at its vehicle manufacturing complex in Ulsan for a new BEV factory as the automaker continues to step up its transition to zero emission vehicles.

The Ulsan complex is the site of Hyundai Motor’s first mass production plant which was built over 50 years ago.