POSCO to Establish Factory for Eco-Friendly Car Motor Electrical Steel Sheets

Starting Next Year, Approximately 1 Trillion Won Invested to Establish Omnidirectional Electrical Steel Sheet Factory

Annual Production Capacity Quadrupled, Establishing a Production System Capable of Meeting Diverse Demands to Capture Global Demand

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] POSCO announced on the 15th that it will establish a production plant for non-oriented electrical steel sheets used in drive motors for eco-friendly vehicles.

At the regular board meeting held on the 5th at the POSCO Center in Seoul, POSCO approved a plan to sequentially invest about 1 trillion KRW starting next year to build a plant with an annual capacity of 300,000 tons in order to respond to the demand for eco-friendly vehicles and secure market leadership.

Currently, POSCO has an annual production capacity of 100,000 tons of non-oriented electrical steel sheets for drive motors, but through this facility investment, it plans to expand to 400,000 tons by 2025.

With the new plant, POSCO will be able to produce not only products with wider widths compared to existing ones but also high-efficiency products with thicknesses below 0.3mm and products with various coating characteristics, enabling it to meet diverse demands from the industry. It is expected that this will reduce social greenhouse gas emissions by approximately 840,000 tons annually.

Recently, the automotive industry is accelerating its structural transformation from internal combustion engines to eco-friendly vehicles to respond to strengthening environmental regulations, with the market share of eco-friendly vehicles expected to increase from 12% this year to 43% by 2030.

Moreover, improving the driving range of electric vehicles has emerged as a key issue in the industry, highlighting the importance of high-efficiency electrical steel sheets that directly affect the efficiency of electric vehicle drive components.

Through this facility investment, POSCO plans to actively respond to the mega-trend changes in the automotive industry, such as the significantly increasing demand for electrical steel sheets in the eco-friendly vehicle era and the demand for improved electric vehicle driving range, and strengthen its global competitiveness.

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr

This content was produced with the assistance of AI translation services.