Posco wins $917 million of EV magnet deals

March 12, 2024

Posco International, a Korean company specializing in EV materials, has secured two contracts worth a total of 1.2 trillion won ($917 million) with global automakers. The company’s U.S. subsidiary will supply permanent magnets to an undisclosed U.S. automaker, a contract valued at 900 billion won. These magnets will be used to manufacture motor cores for the automaker’s new mid-sized EVs from 2026 to 2031.

Permanent magnets are a crucial component of EV motors, alongside batteries. In addition to the U.S. deal, Posco’s European subsidiary has also recently signed a 260 billion won contract to supply permanent magnets to a European automaker. This contract will span from next year until 2034.

Posco International will source the rare earth metals required for the magnets from the United States, Australia, and Vietnam. This is significant as China currently controls 90 percent of the rare earth metals market.

The company has also announced plans to construct two additional EV motor core plants in Poland and Mexico. This will bring the total number of Posco’s plants to five, with existing facilities in Korea, Mexico, Poland, India, and China.

Following the announcement of these contracts, shares in Posco International rose by 13 percent to 60,800 won on Tuesday.