South Korean steel conglomerate Posco is gearing up for a substantial expansion of its production capacities for motor cores and battery materials, specifically tailored for electric vehicles (EVs). According to documents from the group's recent investor relations meeting, Posco plans to invest a staggering 680 billion won (approximately €483 million or $519 million) in the motor core segment alone between 2024 and 2035.
In a strategic move, Posco intends to allocate 44% of the investment to North America, 20% to Europe, and retain the remaining funds for its domestic market in South Korea.
The investment is projected to double the annual production output of motor cores (stator and rotor) from 4.3 million units in 2025 to an impressive 10 million by 2035. This expansion plan encompasses both new and existing plants, with a new facility slated for construction in Poland in early 2024. The Poland facility is anticipated to scale up production to nearly two million units by 2035, a significant increase from the initial 20,000 motor cores.
Posco's existing facilities in China, India, and South Korea are also part of the expansion strategy. In China, the company aims to almost double production to 1 million units by 2030, while in India, Posco plans to increase production from 70,000 units in 2025 to half a million motor cores by 2035. South Korea's already high output is expected to climb from 2.3 million units to 2.7 million over the coming decade.
Beyond motor cores, another arm of the Posco Group, Posco Chemical, is actively involved in cathode material production for electric car batteries. Simultaneously, Posco is ramping up its capacity in battery recycling, with a target to increase the production of battery materials such as graphite, nickel, lithium, and copper foil more than tenfold to 345,000 tonnes by 2030.
Posco's Chief Officer of Global Business, Lee Kye-In, emphasized, “Sales and operating profit of eco-friendly businesses are expected to double and quadruple in 2030, respectively, from this year.” This ambitious initiative positions Posco as a key player in the evolving landscape of EV components and battery materials on a global scale.