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POSCO International Lands Major Order for EV Motor Cores in Europe

The company's recent deal to supply 1.03 million motor cores to Hyundai in Europe bolsters its global expansion and production plans
South Korea
p 047050.KO Mid and Small Cap 2000
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POSCO International Corp. has made a significant stride in the electric vehicle (EV) sector by securing a substantial order for motor cores from Hyundai Motor Group. The contract entails providing 1.03 million units for Hyundai’s EVs produced in Europe, spanning from 2025 to 2034. These motor cores will be distributed through Hyundai Mobis’ EV factory in Slovakia, with allocations of 550,000 units for the Turkiye factory and 480,000 units for the Slovakian facility, both operated by Hyundai Motor Co. and Kia Corp.

This latest deal is part of POSCO International’s larger engagement with Hyundai and Kia, where over the past 15 months, it has secured contracts to supply a total of 11.87 million drive motor cores. The recent order is pivotal for POSCO International’s expansion in Europe, particularly influencing the construction plans of a local production plant in Poland. This plant, set to be established in the city of Brzeg, is strategically located near Europe’s automotive hub, including countries like Germany, the Czech Republic, Slovakia, and Hungary.

The Polish facility, covering a 100,000 square meter site, is expected to commence construction in the first half of this year, with completion targeted for the first half of 2025. Once operational, this plant will bolster POSCO International’s capacity to produce and supply 1.2 million drive motor cores annually in Europe until 2030.

POSCO International’s global production network is rapidly expanding. Last year, it completed a new factory in Suzhou, China, with an annual capacity of 900,000 units and began constructing its first drive motor core plant in Mexico. The company is also contemplating a second plant in Mexico this year. The full operation of the Poland facility will complement POSCO International’s existing production sites in Pohang and Cheonan, South Korea, as well as its locations in Mexico, China, and India. By 2030, POSCO International aims to have a production and sales system capable of producing over 7 million drive motor cores annually.

This expansion reflects POSCO International’s ambitious goal to capture over 10% of the global market share in the EV motor core sector, marking a significant leap in its global business strategy.

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