POSCO International Corp., the energy and trading unit of South Korea’s steel giant POSCO Holdings Inc., said on Thursday it has inaugurated its first European production base for electric vehicle components in Poland, stepping up its ambitions in the global EV market.
POSCO International held a ceremony to mark the completion of its motor core plant in Brzeg, Opole province, aiming to boost its global annual output capacity to 7.5 million units by 2030 from the current 4 million.
Motor cores, which convert electrical energy into mechanical power, are critical components in electric and hybrid cars, influencing driving range, efficiency and noise levels.
The Polish factory, covering 100,000 square meters, will begin trial runs this month before starting mass production in December.
With an annual capacity of 1.2 million units, the site has already secured orders for 1.68 million units from Hyundai Motor Co. and Kia Corp. through 2034 for the two Korean automakers’ EV rollout in Europe.
POSCO International also intends to target European carmakers, including Mercedes-Benz and BMW.
POSCO International is expanding rapidly in EV components manufacturing as it seeks to reduce its reliance on trading revenues.
The company launched its motor core business in 2017 and, after years of losses, turned profitable late last year.
It has posted three consecutive quarters of profits from the division since the fourth quarter of 2024, underscoring its growing importance to the company.
SECOND MEXICAN PLANT
Alongside its two domestic plants in Pohang and Cheonan, and facilities in Mexico and India, the company expects to complete a second Mexican site later this year.
The second plant will be built in Ramos Arizpe, a city in the Coahuila state.
The new plant will largely supply motor cores to Hyundai Motor’s US electric vehicle plant, Hyundai Motor Group Metaplant America LLC (HMGMA), in Georgia.
The two new additions will lift POSCO International’s global production capacity to 6.2 million units annually before additional expansions take it to 7.5 million units by 2030.
POSCO International has set a goal of capturing more than 10% of the global market in the sector.
At the opening ceremony, Chief Executive Lee Kye-in said, “POSCO Group will leverage its strengths in steel for EVs, battery materials and components to lead the future mobility market.”
By Gil-Sung Yang
vertigo@hankyung.com
In-Soo Nam edited this article.
