Posco Int'l to power up EV motor production with Poland, Mexico plants

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Posco Int'l to power up EV motor production with Poland, Mexico plants

Published: 26 Feb. 2024, 14:02 Updated: 15 May. 2024, 14:20

SARAH CHEA
chea.sarah@joongang.co.kr

A rendered image of Posco International's EV motor core plant in Poland, which will complete construction in 2025. [POSCO INTERNATIONAL]

Posco International is building two more EV motor core plants in Poland and Mexico, ramping up its efforts to establish overseas facilities.

The trading company said Monday it approved the agenda during a board meeting last week, which aims to boost its annual capacity to 7 million motor cores by 2030 to claim a 10 percent share of the global market.

Motor cores are key components for EV motors, along with batteries.

The Poland plant will be situated on a 100,000-square-meter (1.07 million-square-foot) site in the city of Brzeg in southwestern Poland, which is near many global automakers' manufacturing plants.

Ground will be broken in June, with the goal of completion in May 2025. The capacity will be expanded to 1.2 million units by the end of 2030.

Samples of Posco International's motor cores [POSCO INTERNATIONAL]

Posco International is also planning to build a plant in northeastern Mexico, next to an existing one in Ramos Arizpe. Construction will start in May and end in March next year.

The newest factory will boost Posco's total capacity in Mexico to 2.5 million units.

The plant will supply motor cores for Hyundai Motor's EV-dedicated facility in the U.S. state of Georgia. Posco in September inked a deal with Hyundai to supply 2.72 million motor core units.

With the latest investments, Posco International will have plants in five countries: Korea, Mexico, Poland, India, and China.

"Our key future growth engine is to become a platform company that creates synergy between companies of different industries and discover new businesses," said Posco International CEO Lee Kye-in. "We will constantly make innovations in business models and provide solutions to clients by shifting to digitalization."

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