Posco Int'l wins $917 million of EV magnet deals

Industry

Published: 12 Mar. 2024, 15:38

Posco Int'l wins $917 million of EV magnet deals

An EV mockup equipped with Posco International's motor cores. [POSCO INTERNATIONAL]

Posco International inked two EV materials deals worth a combined 1.2 trillion won ($917 million) with global automakers, the Korean company said Tuesday.

The conglomerate said its U.S. subsidiary signed a 900 billion won contract with an undisclosed U.S. automaker to supply permanent magnets.

It will supply the magnets, which will be used to make motor cores for the automaker's new mid-sized EVs, from 2026 to 2031.

Permanent magnets are essential components of EV motors along with batteries.

Posco's European subsidiary also signed an another 260 billion won permanent magnets deal recently with a European automaker, which will take place between next year and 2034.

Posco International's EV motor core plant in Mexico [POSCO INTERNATIONAL]

“The latest contracts are meaningful in that we secured a supply chain outside of China,” Posco International said in a statement.

Posco will source rare earth metals, the ingredient for the magnets, from the United States, Australia and Vietnam. China controls 90 percent of rare earth metals market.

The Korean company recently said it is building two more EV motor core plants in Poland and Mexico. It will now have plants in five countries: Korea, Mexico, Poland, India and China.

Posco International shares rose 13 percent to 60,800 won on Tuesday.

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