Posco International has signed an agreement to supply drive motor cores worth 600 billion won ($431 million) for a US-based electric vehicle company.
According to media reports Tuesday, the supply deal covers a total of 3 million motor cores, a key component of electric vehicle motors that convert electrical energy into mechanical motion, with the unit price per 1 million cores estimated at 200 billion won.
Posco International has declined to disclose the details of the agreement, including the name of the client company, citing confidentiality.
Sources reported that the company’s milestone achievement came after its aggressive procurement of permanent magnets — critical raw materials for drive motor cores — by significantly reducing its previous 90 percent reliance on China. Drive motor cores utilize electrical steel and permanent magnets made from rare earth elements such as neodymium and praseodymium.
Through decoupling from the Chinese-dominant rare earth supply chain, Posco International has established a supply alliance with 25 companies across North America, Australia and Asia, securing long-term contracts for permanent magnets totaling 8,500 metric tons.
The company’s initiatives have strengthened its position in the global drive motor core market, accumulating cumulative orders totaling 35 million units through 2033. This includes secured contracts for 1.68 million units designated for Hyundai Motor Group’s European vehicles and 2.72 million units for Hyundai Motor Group Metaplant America.
To support this momentum, Posco International is expanding globally with production sites in Pohang and Cheonan in Korea, two plants in Mexico and a new facility in Poland slated for mass production by the fourth quarter. Its 300,000-unit capacity plant in India is also expecting its first four-wheel drive motor core project within the third quarter.
hyejin2@heraldcorp.com
