Hyundai Mobis announced a significant milestone on the 8th, disclosing the acquisition of $940 million (approximately KRW 1.23 trillion) from seven international financial institutions. This substantial investment will be allocated towards the establishment of a new electrification hub in North America. Notably, this marks the inaugural instance of securing overseas funds through green loans, which are specifically designated for eco-conscious ventures like electric vehicles and renewable energy.
The company’s achievement in procuring a decade-long loan, even amidst mounting uncertainties such as global monetary tightening and escalating interest rates, underscores the perceived growth potential of the electric vehicle sector. Facilitating this feat was the support of Korea Trade Insurance Corporation, a domestic export credit agency that provided a credit guarantee.
This marks Hyundai Mobis’ inaugural foray into raising overseas capital via a green loan. With international financial institutions increasingly prioritizing environmental, social, and governance (ESG) standards, this endeavor is anticipated to yield advantageous interest rates and bolster the company’s reputation as an eco-friendly entity. In 2021, Hyundai Mobis issued green bonds to propel eco-friendly projects within Korea.
The infused capital is earmarked for the construction of new Battery System Assembly (BSA) and Power Electronics (PE) system factories across four locations, encompassing Alabama and Georgia. In October of the previous year, the company unveiled plans to invest a total of $1.3 billion (approximately KRW 1.69 trillion) from 2021 to 2030, signifying the establishment of a new electric vehicle production hub in North America.
A Hyundai Mobis official stated, “Our global expansion strategy in the electrification sector is proceeding seamlessly.” They further emphasized, “Following last year’s triumphant fundraising for a battery cell joint venture plant in Indonesia, we have now successfully secured investment for electrification in North America, a pivotal realm in the future of mobility. The electrification business is gaining significant traction.” Presently, the company boasts electric vehicle production bases in nine locations worldwide, including six in Korea. Additionally, fresh electric vehicle production facilities are underway in Korea, North America, and Indonesia.
