Posco lays foundation for motor core factory in Poland

The South Korean steel group Posco has now started work on a new plant for electric vehicle motor cores in Brzeg, Poland. The components are intended for electric cars from the European plants of Hyundai and Kia.

Posco had already announced the plan for the new plant in Poland in January as part of the major order from sister companies Hyundai and Kia. It will be built on a 100,000 square metre site and is scheduled for completion in mid-2025.

The plant will manufacture traction motor cores with stator and rotor. These are a key component in the drivetrain of most electric cars, but do not play a role in combustion engines.

Production at the plant in Brzeg will initially focus on the delivery of 1.03 million traction motor cores in the second half of 2025. These will be used specifically for Hyundai and Kia electric vehicles destined for the European market. The motor cores will then be installed in the drive units at the factory of Hyundai’s own supplier Hyundai Mobis.

The Slovakian plant of Hyundai Mobis is located in Zilina in the immediate vicinity of the Kia vehicle plant there. Around 480,000 drive units with Posco engine cores will go to the Kia vehicle plant in Zilina. The remaining 550,000 units will be sent on to the Hyundai plant in Turkey. The Hyundai Assan Otomotive plant in Izmit mainly produces small cars and also the electric version of the Hyundai Kona with the small battery.

Posco is aiming to establish a production system by 2030 that is capable of producing 1.2 million drive motor cores per year exclusively at the Polish factory.

In view of increasing protectionism in Europe and the US, the company emphasises that it is important for it to have its own sites in various economic regions around the world. In addition to the new plant in Poland, Posco also has corresponding factories for drive motor cores in South Korea, Mexico and India.

Meanwhile, the Posco Group is starting to build nickel and precursor production facilities in Pohang, South Korea, together with its Chinese partner CNGR. From 2026, 50,000 tonnes of high-purity nickel are to be produced here annually, enough for the batteries of 1.2 million electric vehicles.

kedglobal.com, posco.com (in Korean, Poland), posco.com (nickel)