Posco International announced Thursday that its subsidiary, Posco Mobility Solution, has signed a contract with Hyundai Motor Group to supply additional 2.5 million units of automotive motor cores for Hyundai's flagship electric vehicles, to be produced between 2025 and 2034.
The latest deal came after two previous supply agreements Posco International signed with the Korean auto giant in November last year and January this year, under which the company would supply 3.4 million and 950,000 motor cores for the carmaker’s hybrid sports utility vehicles and mid-sized electric SUVs, respectively.
With the latest deal, the total amount of motor cores to be supplied to Hyundai will reach 6.85 million units for the 10 years between 2025 and 2034.
Posco International said it plans to expand its production capacity to more than 7 million units at home and globally. It aims to secure at least a 10 percent of the global market share.
The company has set up a production system for 2 million units in Korea, while it plans to increase its overseas production capacity to 5 million units by 2030.
By diversifying its production bases, Posco said it aims to reduce risks from trade barriers as countries around the world are tightening rules for securing parts and their materials for electric vehicles.
Posco started construction of a new plant in China with an annual production capacity of 900,000 units in March last year, while planning to operate 1.5 million production plants annually in Mexico from the second half of this year.
Posco International is also focusing its efforts on expanding its distribution network of eco-friendly auto parts, as the company has achieved $800 million (1.44 trillion won) in cumulative orders this year, up 100 percent year-on-year.
"As Posco possesses the lithium procurement capability of Posco Holdings, the automotive steel production capacity of Posco, the cathode material production technology of Posco Future M, and the manufacturing technology of EVs from Posco International, this completes the blueprint for the eco-friendly mobility value chain." an official from Posco International said.