POSCO Inter secures supply rights for Hyundai Motor hybrid vehicle drive motor cores

[Asia Economy Reporter Hyunseok Yoo] POSCO International announced on the 17th that it has secured the supply rights for the drive motor cores of next-generation hybrid vehicles, which Hyundai Motor Company will mass-produce starting in 2025, through its subsidiary POSCO Mobility Solutions, which produces eco-friendly automotive drive motor cores.

The volume ordered by POSCO Mobility Solutions amounts to a total of 3.4 million units from 2025 to 2031. Hybrid vehicles utilize two drive systems, an internal combustion engine and an electric motor, to achieve optimal driving efficiency. Compared to internal combustion engine vehicles, they emit less carbon dioxide and have higher fuel efficiency, establishing themselves as the mainstream of eco-friendly vehicles.

In particular, Hyundai Motor Company's hybrid system adopts the TMED (Transmission Mounted Electric Device) method. This method has the advantage that the vehicle can be driven by the motor alone without operating the internal combustion engine.

Currently, the TMED-I is equipped with a single drive motor, but it is evolving into TMED-II, which is equipped with two drive motors to significantly improve fuel efficiency, so demand for drive motors is expected to continue increasing in the future.

POSCO Mobility Solutions has established a production system for 2 million domestic drive motor cores. Going forward, it plans to expand continuous investment along with orders for drive motor cores to be applied to Hyundai Motor Company's next-generation electric vehicle platform.

POSCO International is operating and constructing local production plants for drive motor cores in China, Mexico, India, and Europe through POSCO Mobility Solutions to respond to the domestic parts production and procurement demands of global automakers. Through this, it plans to establish an overseas production system of 5 million units by 2030.

POSCO-CORE in China began construction of a new plant with an annual production capacity of 900,000 units in March and is scheduled to complete it in the second half of next year. In July, construction began on a plant in Mexico with an annual production capacity of 1.5 million units, which is also planned to start operations in the second half of next year.

Regarding the European production base, the country and factory site will be finalized within this year, with construction starting in the first half of 2023 and production targeted for the first half of 2024.

Kim Hak-yong, President of POSCO Mobility Solutions, emphasized, “This order is significant as it recognizes POSCO Mobility Solutions' technological capabilities with a product applying a new concept production method to improve hybrid motor performance,” and added, “Taking this order as an opportunity, we plan to establish a production system of over 7 million drive motor cores by 2030 and accelerate growth as a global top-tier eco-friendly vehicle parts company.”