POSCO International, the general trading unit of South Korean steel and chemicals conglomerate Posco Holdings, has signed an eight year deal to supply KRW1trn (US$765m) worth of electric vehicle (EV) components to an unnamed US automaker, according to local reports citing a company official.
The preliminary agreement, understood to be with General Motors (GM), is for the supply of EV traction gears from 2024 to 2032.
A Posco official said: “We cannot reveal the client’s name due to a confidentiality agreement” but did say the supplier would build a factory in the US if required by the customer.
Under a separate seven year deal worth KRW150bn, Posco has agreed to supply drive motor shafts to another US based automaker, also starting in 2024. These parts will be manufactured in South Korea by an affiliated company and supplied by the Posco Mobility Solutions unit.
Posco has stepped up its expansion into the US EV supply chain in the last two years, particularly in the battery materials segment where it has a cathode materials production joint venture in Canada with GM.
In September, Posco signed an agreement worth KRW900bn to supply 1.6m traction motor cores to Hyundai Motor Group Metaplant America from 2026, as part of a broader global deal with the automaker.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Last month, Posco completed a new plant in Mexico to produce motor cores targeting North America’s growing EV industry.