By Diplomacy Journal Lee Kap-soo

POSCO International, led by 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.

A groundbreaking ceremony for the new traction motor core plant was held in Brzeg, Opole Voivodeship, Poland on June 11, 2024.

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.

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.

Contrary to recent concerns about the EV craze, the green car market continues to grow. 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.

“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.”