Warsaw: POSCO International Corp., the trading arm of POSCO Group, announced the completion of its electric vehicle (EV) parts plant in Poland, aimed at addressing the increasing demand prompted by the European Union’s emissions policies.
According to Yonhap News Agency, the company invested 94 billion won (US$67 million) in the facility, which is set to commence mass production of drive motor cores in December following two months of test operations. The new plant marks a significant expansion for POSCO International, forming part of a “global drive motor core production network” that includes Asia, North America, and Europe.
By 2030, POSCO International plans to produce 7.5 million drive motor cores annually, with production targets set at 2.5 million in South Korea, 3.5 million in Mexico, 1.2 million in Poland, and 300,000 in India. The company is aiming for a 10 percent share of the global market. While currently producing non-EV motor cores in India, POSCO International intends to establish a new facility there for manufacturing drive motor cores by 2028.
Lee Kye-in, President and Chief Executive Officer (CEO) of POSCO International, emphasized the strategic importance of the Polish plant, stating it will act as a hub for supplying EV components throughout Europe. He noted that POSCO Group is poised to lead the future mobility market by leveraging its expertise in automotive steel, battery materials, and EV parts.
The company has already secured orders for drive motor cores intended for use in 35 million battery electric and plug-in hybrid vehicles by 2033. As Hyundai Motor Co. and its affiliate Kia Corp., major clients of POSCO, expand their local EV production in Europe, POSCO International anticipates further growth.
The revenue from the drive motor core business is expected to increase from 450 billion won this year to 1.5 trillion won by 2030, in alignment with the EU’s plan to ban sales of combustion engine cars starting in 2035. The International Energy Agency forecasts that EV sales in Europe will reach 4 million units, representing 25 percent of new registrations by 2025, with this share projected to exceed 55 percent by 2030.