"Targeting the North American Market" POSCO Inter Completes Construction of Electric Vehicle Parts Factory in Mexico

Production of 2.5 Million Drive Motor Cores by 2030

POSCO International has completed the construction of a drive motor core (a component that generates electricity in a motor) factory in Mexico to target the North American eco-friendly vehicle parts market. On the 17th (local time), the company held a completion ceremony for the drive motor core production plant located in Ramos Arizpe, Coahuila, Mexico.

Attendees at the completion ceremony included Jeong Tak, Vice Chairman of POSCO International; Noh Min-yong, President of POSCO Mobility Solutions; Miguel Riquelme, Governor of Coahuila; and Heo Tae-wan, Ambassador of Korea to Mexico.

Ramos Arizpe, where the factory is located, is the center of the automotive industry in northeastern Mexico, with a concentration of finished car manufacturers and parts factories. The company explained that it is suitable for targeting the North American eco-friendly vehicle market as it is only about 300 km away from the Texas border in the United States.

(From the third person on the left) Jose Maria Morales, Mayor of Ramos Arizpe, Mexico; Miguel Riquelme, Governor of Coahuila; Jung Tak, Vice Chairman of POSCO International; Heo Tae-wan, Ambassador of Korea to Mexico; and Lee Gye-in, Head of POSCO International Division, are participating in the completion ceremony of the electric vehicle drive motor plant in Coahuila, Mexico.
[Photo by POSCO International]

The plant, which began construction in July last year, consists of the first plant with a total area of 63,925㎡ (approximately 19,371 pyeong) operating 18 presses, and a second plant scheduled to begin construction in the first half of next year. Once the second plant is operational, the company will establish an annual production system of 2.5 million drive motor cores by 2030.

Orders have been pouring in even before the plant's construction. Last year, the company signed a long-term contract worth $460 million (approximately 621.9 billion KRW) with North American finished car manufacturers through 2030. Last month, it signed a supply contract for a total of 2.72 million parts with Hyundai Motor Group's new North American plant.

POSCO International Plans to Sell Rotor Motor Cores [Photo by POSCO International]

Based on the completion of the Mexico plant, the company plans to expand its eco-friendly mobility business. By 2030, it aims to establish a production system of 2 million units in Korea and 2.5 million units in Mexico, and operate overseas plants in key locations such as Poland, China, and India to build an annual production and sales system of over 7 million drive motor cores. The company has also set a goal to secure more than 10% of the global market share.

In China, a new plant with an annual production capacity of 900,000 units, which began construction in March last year, has been completed and is preparing for operation. In Europe, Poland has been selected as the production base, with construction scheduled to begin in the first half of next year and parts production to start in the second half of 2025.

Vice Chairman Jeong said, “This is a meaningful moment as POSCO International takes its first step to conquer the North American continent, the biggest battleground in the global automotive market,” adding, “Following the North American market, we will actively target the European and Asian markets and continue to grow as a global top-tier eco-friendly vehicle parts company.”

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