POSCO INTERNATIONAL : secures the supply right for automotive motor cores of Hyundai Motor's hybrid vehicles

POSCO INTERNATIONAL

secures the supply right for automotive motor cores of

Hyundai Motor's hybrid vehicles

- 3.4 million units to be supplied by 2031 through its subsidiary, POSCO Mobility Solutions

- Global expansion through overseas production bases in China, Mexico, India, and Europe

- A step towards becoming a world-class eco-friendly parts manufacturer with a production capacity of 7 million units by 2030.

POSCO INTERNATIONAL announced on Nov. 16th that its subsidiary POSCO Mobility Solutions, which manufactures automotive motor cores for eco-friendly vehicles, has secured the supply right for automotive motor cores to be installed in the next-generation hybrid vehicles to be manufactured by Hyundai Motors starting in 2025.

The quantity of the order received by POSCO Mobility Solutions is 3.4 million units from 2025 to 2031.

Hybrid vehicles, known for their optimal driving efficiency using two types of driving systems, namely internal combustion engines and electric motors, are responsible for leading the industry's transition into eco-friendly vehicles, thanks to their low CO2 emissions and high fuel efficiency compared to internal combustion engine vehicles.

In particular, the hybrid system used by Hyundai Motors is the TMED (Transmission Mounted Electric Device) method, whose strength lies in the ability to drive only with the electric motor without having to operate the internal combustion engine.

With the current shift to TMED- II, which is equipped with two automotive motors and therefore dramatically improved fuel efficiency compared to the single driving motor TMED- I, the demand for automotive motors is expected to continue increasing in the future.

POSCO Mobility Solutions has established a domestic production system capable of producing 2 million units of automotive motor cores, and is anticipating continuous investments in addition to the order received from Hyundai Motor's next-generation electric vehicle platform.

POSCO INTERNATIONAL is operating and constructing local production plants for automotive motor cores in China, Mexico, India, and Europe under POSCO Mobility Solutions in order to respond to domestic parts production and supply needs of global automakers, through which it plans to establish a production capacity of 5 million units by 2030.

POSCO-CORE in China has begun the construction of a plant with an annual production capacity of 900,000 units in March as well as one in Mexico with an annual production capacity of 1.5 million units in July, both of which are expected to complete and begin operation in the second half of 2023.

In addition, the countries and locations of its European production bases will be confirmed within the year to begin construction in early 2023 and production in the first half of 2024.

CEO Kim Hak-Yong of POSCO Mobility Solutions stated, "the order received from Hyundai Motors is significant in that it will be incorporating the new production technique we've developed to improve the performance of the hybrid motor. Based on this recognition of our cutting-edge technology, we plan to position ourselves as a world-class eco-friendly parts manufacturer with a production capacity of 7 million automotive motor core units by 2030."