Posco International, part of South Korea’s steel and chemicals conglomerate Posco Group, announced that it has completed the construction of its new electric vehicle (EV) drive motor core plant in Brzeg, in Poland’s Opole Province, as part of the company’s plans to establish a strong presence in the European EV supply chain.
The opening ceremony was attended by Posco International’s CEO, Lee Kye-In; the Opole Governor, Monika Jurek; and the South Korean Ambassador to Poland, Tae Jun-Yeol. The EUR 57 million facility, with an output capacity of 1.2 million motor cores per year, will begin trial production in October, with full commercial production scheduled for December this year.
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Lee Kye-In said in a statement: “The Poland drive motor core plant is a key hub for preemptively securing the European EV market. Posco Group will lead the future mobility market with its integrated group-wide capabilities such as EV-spec steel, battery materials, and components.”
Together with similar plants in Asia and North America, Posco is targeting a 10% share of global EV drive motor core sales by 2030. By then, it expects to have an annual production capacity of 7.5 million units in place globally, split between South Korea, Mexico, Poland and India, generating annual revenues of KRW 1.5 trillion (US$ 1 billion). Its plant in Mexico is scheduled to be completed by the end of 2025.
The company cited data from the International Energy Agency (IEA) forecasting that annual battery electric vehicle (BEV) sales in Europe will reach 4 million units in 2025, or 25% of new vehicle sales, rising to 55% by 2030. The EU is also scheduled to ban sales of internal combustion engine (ICE) vehicle sales by 2035.
South Korean automaker Hyundai Motor Group is expected to ramp up BEV production in the region in the next few years, with Kia having recently begun production of its EV4 compact BEV in Slovakia.
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By GlobalDataPosco said it has already secured orders for 35 million drive motor cores globally, to be supplied by 2033, including 1.68 million units to be supplied from its Polish plant for fitment in European-made Hyundai and Kia EVs. The company is also looking to sign sales contracts with other European automakers, including Volkswagen Group.
Posco said its drive motor cores incorporate the company’s non-oriented electrical steel sheets (Hyper NO) and proprietary EMFree technology, which “applies thin layers of adhesive for lamination, improving energy efficiency and minimizing noise and vibration compared with the conventional EMBO method, enhancing both EV driving range and in-cabin quietness.”
