Posco breaks ground on EV drive motor core plant in Mexico

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Posco breaks ground on EV drive motor core plant in Mexico

Joo Si-bo, fifth from left, president of Posco International, turns a shovel during a groundbreaking ceremony for the construction of an EV component factory in Mexico on Wednesday. [POSCO INTERNATIONAL]

Joo Si-bo, fifth from left, president of Posco International, turns a shovel during a groundbreaking ceremony for the construction of an EV component factory in Mexico on Wednesday. [POSCO INTERNATIONAL]

Ground was broken Wednesday on Posco International's factory in Mexico for making electric vehicle (EV) drive motor cores, a key component in EVs.
 
The facility, which is located in Ramos Arispe, the northeastern part of Mexico, will be completed by the end of next year. Around 300,000 drive motor cores will be produced annually at the outset, but Posco International plans to invest a total of 160 billion won ($123 million) to increase that figure to 1.5 million by the end of 2030.
 
The Mexico plant will be Posco International's first plant in North America, which has the largest EV market in the world. 
 
The driving motor core is a key component generates electricity in EVs, and its quality determines the vehicle's performance.
 
Posco International said it already signed a $460 million deal with an undisclosed automaker to supply the components. 
 
EV components are one of the company's latest focuses. In December, it completed constructing a driving motor core plant in Pohang, North Gyeongsang, which has 1 million annual capacity. 
 
Posco International aims to grab a 20-percent share in the world's driving motor core market by the end of 2025.
 
"Using our Mexico plant as the bridgehead, we will target the North American EV component market and become a major partner of global automakers," said Joo Si-bo, president of Posco International.

BY SARAH CHEA [chea.sarah@joongang.co.kr]
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