POSCO International announced on September 1 that it has secured an order for drive motor cores for 3 million units from a North American company. The drive motor core is a key component for electric vehicles, converting electrical energy into kinetic energy.
The unit price of a drive motor core is approximately 200 billion won per 1 million units. The total value of this contract is estimated to exceed 600 billion won.
The reason POSCO International succeeded in winning this large-scale order is its successful establishment of a non-China supply chain for permanent magnets, which are the raw material for drive motor cores. Permanent magnets use rare earth elements such as neodymium and praseodymium. While rare earth elements are typically highly dependent on China, POSCO International is diversifying its supply chain by sourcing rare earth elements from the United States, Australia, and Vietnam.
POSCO International is also ramping up its efforts to target the global finished vehicle industry, having already signed supply contracts for 1.68 million units for Hyundai Motor's European market and 2.72 million units for Hyundai Motor Group's Metaplant America.
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