POSCO INTERNATIONAL Sets to Construct a Plant for Electric Vehicle (EV) Traction Motor Cores in Mexico
2023.10.18
POSCO INTERNATIONAL Sets to Construct a Plant
for Electric Vehicle (EV) Traction Motor Cores in Mexico

- Held a ceremony for the completion of its EV traction motor core plant in Coahuila, Mexico on the 17th
- Signed a long-term contract worth USD 460 million with a North American automaker to supply 2.72 million units of EV traction motor cores to Hyundai Motor's new plant in the U.S.
- Aims to become a top-tier global eco-friendly mobility parts company by establishing a production system for 7 million units by 2030

POSCO INTERNATIONAL (CEO: Vice Chairman Jeong Tak) has successfully completed the construction of its traction motor core plant for electric vehicles (EV) in Mexico, marking its entry into North America's eco-friendly mobility parts market.

POSCO INTERNATIONAL held a ceremony on the 17th (local time) to inaugurate the POSCO INTERNATIONAL Mexico E-Mobility (PI-MEM) production plant located in Ramos Arizpe, Coahuila, Mexico.


This ceremony was attended by Miguel Riquelme, Governor of Coahuila; Heo Tae-Wan, Korea's Ambassador to Mexico; Jeong Tak, Vice Chairman of POSCO INTERNATIONAL; and No Min-Yong, President of POSCO MOBILITY SOLUTION.

To mitigate the risks of trade barrier in the EV market, POSCO INTERNATIONAL selected northeastern Mexico earlier as its production base for North American expansion after considering various factors, such as competitiveness in logistics. The construction on the traction motor core plant began in July last year.


Constructed on approximately 63,925 m² (approximately 19,371 pyeong), Plant 1 will house 18 press machines. The construction of Plant 2 is scheduled to begin in the first half of next year. Once both plants are operational, they would have an annual production capacity of 2.5 million units by 2030.

The new plants are situated at Ramos Arizpe―a hub for automotive industry nestled in northeastern Mexico. This region houses major automakers along with many parts plants. It is merely about 300 kilometers away from the U.S. border in Texas, making it an ideal location for launching into North America's eco-friendly vehicle market.


The traction motor cores produced at this Mexican plant will be supplied across major automakers based out of North America and Mexico to be used for the production of traction motors for hybrid and electric vehicles.

Particularly noteworthy is that prior to building this plant last year, POSCO INTERNATIONAL secured a long-term contract worth USD 460 million that lasts until 2030 with a major North American automaker. The company also signed a deal with Hyundai Motor Group Metaplant America (HMGMA) in last September to supply a total of 2.72 million traction motor cores for next-generation EVs, thus ensuring operational stability upon completion of the plant.

POSCO MOBILITY SOLUTION, which is its affiliate that became an independent entity from POSCO INTERNATIONAL in 2020, oversees the production and manufacturing processes for these traction motor cores. As Korea's top manufacturer of traction motor cores, POSCO MOBILITY SOLUTIONis making strides in the eco-friendly EV market with global automakers, leveraging its proprietary patented technology and supply of electric steel from POSCO.


In an effort to strengthen its eco-friendly mobility business, POSCO INTERNATIONAL is aiming to establish a global production and sales system that can produce more than 7 million traction motor cores annually by 2030, incorporating production systems in Korea and Mexico with capacities of 2 million and 2.5 million units respectively, along with its overseas plants in Poland, China, and India. The objective is to capture a global market share of at least 10%.

In China, the company has already completed a new plant with an annual production of 900,000 units that broke ground last March and is now gearing up for operation. In Europe, Poland has been chosen as the production base where construction of the plant is scheduled to begin in the first half of 2024 and its production in the second half of 2025.

"The completion of the PI-MEM plant attests to the accelerating electrification trend within North America's and Mexico's automotive industry," remarked Miguel Richelme, Governor of Coahuila, at the ceremony. "We hope that top-notch Korean companies will continually support us so that we can evolve into an eco-friendly vehicle manufacturing hub."

"This marks a significant milestone for POSCO INTERNATIONAL as it ventures into North America―the world's largest automotive battleground," said Jeong Tak, Vice Chairman at POSCO INTERNATIONAL. "Following our expansion into North America, we will become a top-tier global eco-friendly mobility parts company by actively targeting European and Asian markets."
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Posco International Corporation published this content on 18 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 23:30:48 UTC.