All data are based on the daily closing price as of May 24, 2024

POSCO International Expands into North American Electric Vehicle Parts Market

POSCO International has successfully concluded the construction of a drive motor core factory in Ramos Arripe, Coahuila, Mexico, marking a pivotal move into the burgeoning North American eco-friendly vehicle parts sector.
p 047050.KO Mid and Small Cap 2000
Share this on

The completion ceremony, held on the 17th local time, saw the presence of distinguished guests including Coahuila Governor Miguel Riquelme, Korean Ambassador to Mexico Heo Tae-wan, POSCO International Vice Chairman Jeong Tak, and POSCO Mobility Solutions President Noh Min-yong.

Selecting the northeastern region of Mexico as its production hub, POSCO International strategically mitigated trade barrier risks, notably those posed by the U.S. Inflation Reduction Act (IRA), underscoring its commitment to the electric vehicle market. The first factory, spanning a total area of 63,925 m², is slated to operate 18 dedicated presses. Construction on the second factory is set to commence in the first half of the coming year, with the overarching objective of establishing an annual production capacity of 2.5 million units by 2030. The Mexican facility’s production and manufacturing operations are overseen by COSCO Mobility Solutions, a subsidiary of POSCO International.

The drive motor cores manufactured at this Mexican facility will be channeled to automakers in North America for integration into electric and hybrid vehicle drive motors. Last year, prior to the commencement of construction, POSCO International inked a substantial $460 million long-term contract extending until 2030 with a prominent North American automaker. In September, an additional agreement was formalized for the supply of drive motor cores for a cumulative 2.72 million next-generation electric vehicles at Hyundai Motor Group’s New North American Plant (HMGMA).

POSCO International’s Vice Chairman Jeong Tak emphasized, “This marks a momentous step towards our foray into the North American continent, the epicenter of the global automotive market.” He further stated, “Following our North American incursion, we are poised to aggressively target the European and Asian markets, with the aim of evolving into a premier global eco-friendly automotive components enterprise.” His sentiments echoed a resounding ambition for future growth and expansion.

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top