Stellantis to Invest $111 mn in Hungarian Facility for Electric Drive Module Production

By Editor


Stellantis has announced an investment of 103 million euros ($111.02 million) in its Szentgotthard facility in Hungary. This investment aims to expand the production capacity of electric drive modules (EDMs), a crucial component in the company’s strategy to bolster its electric-vehicle (EV) portfolio.

The investment marks Stellantis’ third venture into EDM manufacturing facilities, following Tremery-Metz in France and Kokomo, Indiana, in the United States. Notably, the €103 million investment in Szentgotthard includes grants and contributions from the Hungarian government, further solidifying the company’s commitment to its European operations.

Arnaud Deboeuf, Stellantis Chief Manufacturing Officer, highlighted the significance of this investment, stating, “Bringing production of electric drive modules to Szentgotthard to support our transformation towards electrification is another important part of our goal to provide customers with clean, safe, and affordable mobility.”

The expansion at the Szentgotthard plant aligns with Stellantis’ ambitious electrification goals, aiming for 100 percent sales from battery EVs in Europe by 2030. As part of its broader electrification strategy, the company plans to invest $50 billion over the next decade to drive innovation and accelerate the transition to EVs.

Stellantis aims to achieve its Dare Forward 2030 targets, including reaching a 100 percent passenger car battery electric vehicle (BEV) sales mix in Europe and a 50 percent BEV sales mix in the United States by 2030. To support these objectives, the company is securing approximately 400 GWh of battery capacity, leveraging six battery manufacturing plants in North America and Europe.

The expansion project at the Szentgotthard plant, known for producing internal combustion engines, will involve machining key components and final assembly and testing of 3-in-1 EDMs. Production of EDMs is expected to commence in late 2026, contributing to Hungary’s role in facilitating the automotive industry’s electrification transition.

“Now, traditional propulsion will be manufactured next to electric drive module production. With this investment, we are protecting jobs and ensuring the future of the Szentgotthard plant,” Minister Peter Szijjarto said.

Szentgotthard-produced EDMs will be integrated into vehicles built on Stellantis’ BEV-centric STLA platform. Stellantis employees will undergo upskilling training to support the machining and assembly requirements of EDM production.

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