A drive motor core deal worth 600 billion won has been secured by Posco International. This agreement represents a major step for South Korea’s role in the electric vehicle industry.
Importantly, the deal covers 3 million units in total. Each million units is valued at 200 billion won, which demonstrates the scale of the achievement. Although the US client company remains undisclosed due to confidentiality, industry experts already see this contract as a milestone.
Furthermore, drive motor cores serve as essential components in electric vehicles. They convert electrical energy into mechanical power, ensuring reliable and efficient vehicle performance. Since they require electrical steel and rare earth magnets like neodymium and praseodymium, securing stable supply chains has become critical.
Therefore, Posco International shifted its sourcing strategy to reduce risks. Previously, the company relied on China for nearly 90 percent of permanent magnets. However, it successfully reduced that dependence by forming alliances with 25 companies across North America, Australia, and Asia. Consequently, these partnerships secured 8,500 metric tons of permanent magnets through long-term contracts.
As a result, Posco International strengthened its global order book. The company now holds cumulative contracts for 35 million drive motor cores through 2033. These agreements include 1.68 million units for Hyundai Motor Group’s European vehicles and 2.72 million units for Hyundai Motor Group Metaplant America.
In addition, Posco International continues expanding its production capacity. Facilities currently operate in Pohang and Cheonan in South Korea, along with two plants in Mexico. Moreover, a new factory in Poland will begin mass production later this year. At the same time, an Indian plant with a 300,000-unit capacity is preparing its first four-wheel drive motor core project.
Because of this global expansion, automakers view Posco International as a reliable partner. By diversifying supply chains and reducing dependence on China, the company offers stability in a volatile market. In turn, this strategy positions South Korea as a stronger global player in the EV supply chain.
Ultimately, the drive motor core deal showcases Posco International’s growth. By combining innovation, diversification, and strategic investments, the company demonstrates resilience in an increasingly competitive global market.
