POSCO International to supply EV parts worth $664 mn to Hyundai Motor Group

Samples of drive motor core supplied by POSCO International to Hyundai Motor Group. [Courtesy of POSCO International]

POSCO International Corp., a trading company under South Korea’s steel making giant POSCO Group, will supply electric vehicle (EV) parts worth 882.5 billion won ($664.49 million) to Hyundai Motor Group.

On Thursday, POSCO International announced it signed a contract with Hyundai Motor Group to supply an additional 3.53 million units of drive motor cores with an expected contract value of up to 882.5 billion won. Drive motor cores are used to produce drive motors, a key component of eco-friendly vehicles such as EVs.

Under the agreement, POSCO International will supply 1.09 million front-wheel drive motor cores and 1.63 million rear-wheel drive motor cores for next-generation EVs to Hyundai Motor Group’s new North American plant for eight years from 2026, and 810,000 rear-wheel drive motor cores for the auto giant’s domestic EV production from 2026 to 2036.

With this contract, the cumulative volume of drive motor cores the two companies have contracted since November 2022 totaled 10.38 million units, surpassing the 10-million-unit mark. The drive motor cores will be used in various vehicle types, including next-generation flagship EVs, hybrid sport utility vehicles (SUVs), and mid-size electric SUVs.

POSCO International manufactures drive motor cores through its subsidiary, POSCO Mobility Solution. “POSCO Mobility Solution produces products that maximize motor performance using patented technology developed by its in-house mold research institute,” an official from POSCO International said. “POSCO’s high-quality, non-oriented electrical steel that we use as a raw material is another competitive advantage.”

POSCO International is also actively working to establish a global production network to meet the demand for local parts from automobile manufacturers. The company is committed to creating an overseas production system for drive motor cores with an annual capacity of 5 million units in key regions such as China, Mexico, Poland, and India by 2030.

The company will complete a new plant in China with an annual production capacity of 900,000 units within the year, and a plant with an annual production capacity of 1.5 million units in Mexico next month.