MANILA -- Hyundai Mobis has integrated production of core components of fuel-cell vehicles, paving the way for mass production.
The main parts maker of the Hyundai Motor group spent more than 70 billion won ($62.2 million) to build a factory in its eco-friendly complex in central South Korea, according to Tuesday's announcement. Hyundai Mobis says it is the world's first factory line with an integrated system to mass-produce hydrogen fuel-cell car parts.
The company seeks to cut costs further by mass-producing motors, fuel-cell stacks and motor-and-electronic control equipment under one roof. The factory will have the capacity to produce parts for 3,000 vehicles yearly. Starting with supplying to Hyundai Motor, the company plans to eventually expand its sales to other automakers.
Hyundai Mobis said 98% of its core components will now be made in South Korea. Depending on market demand, it will also consider lifting its annual output capacity to tens of thousands of units.
Hyundai Motor is set to release a new fuel-cell car model as early as this year. By revising its production system prior to the launch, it aims to catch up to Japanese automakers that are leading in the fuel-cell car field.