POSCO International to export EV parts to US, Europe
An emission-free vehicle model equipped with POSCO International's driving motor / Courtesy of POSCO International
POSCO International has sealed deals with an American electric vehicle (EV) maker and a French fuel cell vehicle maker to supply critical manufacturing parts until 2032, highlighting the firm's presence in the global EV market, according to the company, Wednesday.
The firm recently signed a 300 billion won ($228 million) deal with the United States' major EV maker to supply speed reducers. The firm said that the importance of a speed reducer has been renewed and demand is currently on the rise in the international EV market.
Under the deal, POSCO will deliver the parts in a series of shipments starting next year until 2032.
The company said it has already expanded its U.S. supply market for permanent magnets and shafts to strengthen its local value chain for the EV motor system. A permanent magnet and shafts are part of four key components of the rotor that, together with the stator, makeup two main parts of an EV driving motor.
The company has also signed a 100 billion won deal with French car maker Hyvia to supply power converters for fuel-cell vehicles. It is the first time that POSCO has signed a supply deal with a global hydrogen car maker.
Under the deal, POSCO will begin shipping parts for new models of Hyvia, a joint venture of France's Renault and America's Power Plug, in 2025.
POSCO has secured a series of deals thanks to its "preemptive strategic direction towards eco-friendly mobility," according to the company.
"We had targeted and invested in the industry in advance," said an official from the company. "By 2027, we expect our performance in the eco-friendly mobility market will surpass that of internal combustion engines."
The company, last October, built a driving motor core factory in Mexico and plans to build a second one in the first half of next year. Fabricated parts from the two plants will help to complete some 7 million EVs each year, 5 million of which, will be exported. With the expansion, the company expects its production will allow the business to reach 10 percent of the global market for driving motor cores, another main component of rotors.
"Our goal is to supply for global top-tier companies," said the official. "We will form partnerships with small to medium-sized local companies with outstanding technologies to create better products and, if necessary, erect new factories in North America as well."