June 2024 | Posco International (CEO Lee Kye-In) is setting up a production base for the European electric vehicle (EV) market this year, following its expansion into the North American market last year. Posco aims for an annual production capacity of 7.5 million units and over 10 percent of the global market share by 2030.
On the 11th June, a groundbreaking ceremony for the new traction motor core plant was held in Brzeg, Opole Voivodeship, Poland. The event was attended by Opole Marshal Andrzej Bula, Brzeg Mayor Violetta Jaskolska-Palus, Korean Ambassador to Poland Lim Hoon-Min, Posco International Green Industry Business Head Lee Young-Woo, and others.
New Plant in Poland
The new plant, which will occupy a 100,000m² site, is expected to be completed by mid-2025 and will commence full-scale operations in the second half of 2025 with its initial project focusing on producing 1.03 million traction motor cores for Hyundai and Kia’ locally produced EVs in Europe.
Looking ahead, Posco International plans to target major European EV manufacturers and build a production system for 1.2 million traction motor cores annually at the Poland plant alone by 2030. This new plant will be part of its global production cluster for traction motor cores, which includes locations in Pohang and Cheonan in Korea, as well as in Mexico, India, and Poland. By securing local production bases in key economic regions such as East Asia, Southwest Asia, North America, and Europe, the company has apparently eliminated the risk of tariff barriers due to increasing protectionism.
Growing Green Car Market
According to Posco International, the green car market continues to grow – contrary to recent concerns about the EV craze. According to the European Automobile Industry Association (ACEA), hybrid vehicle sales in Europe reached 3.41 million units in 2023, which is up 28% from 2022, with EV sales growing at a similar rate.
The European Union (EU) has announced a total ban on the sale of new internal combustion engine vehicles by 2035. The Korea Trade-Investment Promotion Agency (KOTRA) predicts that European EV sales will increase to 5.4 million units by 2025 and 10.6 million units by 2030, considering the EU’s carbon neutrality policy.
In particular, the traction motor core is a key component of the drive control system in almost all types of eco-friendly vehicles, except conventional internal combustion engine vehicles, and its demand is expected to continue growing in the future.
In response, the company plans to strengthen its position as a global supplier of eco-friendly mobility parts by establishing an annual global production capacity of 7.5 million units by 2030, aiming for a 10% market share.
“It is significant that we have secured a production base in Europe, which is at the forefront of the eco-friendly automobile industry after Asia and North America,” said a Posco International official. “We will further collaborate with major European automakers to become a leading eco-friendly mobility parts company in the world.”
