Posco starts up production at drive plant in Mexico

Posco has completed the construction of a production facility for 1.5 million electric drive cores annually in Ramos Arizpe, Mexico. The drive cores with stator and rotor produced in Mexico are supplied to car manufacturers in North America

Image: Posco

The foundation stone for the plant was laid in July 2022, when 18 press machines for the production of the stator and rotor were announced. What is clear is that very few of the e-motor cores will remain in Mexico: Ramos Arizpe in the state of Coahuila is only 300 kilometres from the US border with Texas. Therefore, with a General Motors plant (including the Equinox EV) and other suppliers, the city is considered an optimal export location for the United States.

The company is already planning to start building the second factory in the first half of 2024 to increase capacity in Mexico to 2.5 million units by 2030. Hyundai Motor Group had ordered 3.5 million units from Posco as recently as September, including 2.7 million units for the US.

Hyundai and its sister brand Kia already have US plants, but Hyundai is additionally building Hyundai Motor Group Metaplant America (HMGMA), a large electric car plant, in Georgia.

“It is a significant moment for POSCO International to take its first step toward the North American continent, the global auto industry’s largest battleground,” says Posco President and CEO Jeong Tak. “We aim to keep growing into a global top-tier eco-friendly car parts maker by actively targeting the European and Asian markets after North America.” In China, Posco plans to build a factory for up to 900,000 drives per year, while construction on a plant in Poland is scheduled to begin in the first half of 2024.

The South Korean steelmaker itself aims to produce a total of 5 million engine cores annually by 2030 at its main production facilities outside South Korea, specifically in China, Mexico, Poland and India. Another arm of the Posco Group – Posco Chemical – is active in the field of cathode material production for electric car batteries. Posco is also building up capacity in battery recycling.



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