How POSCO International is Strengthening its Global Foothold in the Electric Vehicle Market
Key Highlights :
POSCO International, the trading arm of steel giant POSCO Holdings, is strengthening its global foothold in the electric vehicle (EV) market. On Thursday, the company announced that it had clinched an additional contract with Hyundai Motor to supply 2.5 million units of a key auto component for EVs, raising the total orders from Hyundai to 6.85 million.
POSCO Mobility Solution, a subsidiary of POSCO International, will supply the driving motor cores for Hyundai from 2025 to 2034. Driving motor core is a key component that generates electricity in EVs and its quality determines the vehicle performance. This latest deal follows two previous supply agreements POSCO International signed with Hyundai in November 2020 and January 2021, under which POSCO will supply 3.4 million and 950,000 motor cores for Hyundai hybrid SUVs and semi-midsize electric SUVs, respectively.
POSCO International is aiming to establish a solid global foothold with at least 10 percent market share by increasing production capacity to over 7 million by 2030, from 1.2 million units in 2021. To achieve this goal, the company is building what will be its first North American plant in Mexico. Once operational, the plant will have the capacity to produce 650,000 units a year and 1.5 million units annually by 2030.
POSCO International has already secured a combined $460 million worth of long-term motor core supply contracts with major global automakers. The company is also ramping up its push for environmentally friendly sectors, such as electric and hydrogen vehicles, amid an industrywide shift to electrification and other green businesses.
The recent contract with Hyundai is a testament to POSCO International’s commitment to the EV market. As the company continues to grow and expand its global presence, it is well-positioned to become a major player in the EV sector.
