Magnetics Business & Technology - November/December 2024 - 10

FEATURE ARTICLE
Korean Steelmaker POSCO Establishes 'China Excluded' Supply Chain for Rare Earth Magnets
in Big Expansion for EV Drivetrain Components
Holding big new orders
from automakers
for permanent
magnets and planning
to build a globally
integrated enterprise
for magnet
and motor component
manufacturing,
Korean steelmaker
Posco International
recently announced
that it has successfully established a complete, integrated supply
chain for the production and application of permanent magnets fully
independent of rare earths and magnet processing or products from
China.
Key elements of the multi-pronged development include:
*
permanent magnets for six years.
*
nine years.
*
Its U.S. subsidiary has secured a KRW 900 billion ($673
million) order from a North American global automaker to supply
Its German subsidiary is set to supply permanent magnets
worth KRW 260 billion ($195 million) to a European automaker over
Partnered with a Korean magnet company for the production
of permanent magnets using rare earths not from China to diversify
the supply chain, supported by jointly building a major new
magnet factory in the U.S.
*
A global network of new production operations for traction
motor cores to supply automakers, beginning in Mexico and Poland
and spreading to other countries.
Its U.S. subsidiary recently secured the KRW 900 billion order in
North America from an unnamed global automaker to supply permanent
magnets from 2026 to 2031. The permanent magnets will be
used for the traction motors of the client's new medium and largesized
electric vehicle models, according to Posco CEO Lee Kye-In.
In Europe, Posco's German subsidiary has signed a contract to supply
permanent magnets valued at approximately KRW 260 billion to
a premium European automaker from 2025 to 2034.
The Europe deal, finalized in January, calls for supplying 1.03 million
traction motor cores to Hyundai Motor Group and Kia for their
first locally produced EVs in Europe. A long-term supply agreement
extending from 2025 to 2034, it is designated for plants in Turkey
and Slovakia. Plant construction by Posco in Poland will begin early
this year. Through the electrification plant at Hyundai Mobis' factory
in Slovakia, 550,000 units of traction motor core will be supplied to
Hyundai Motor Group and Kia's Turkish plant, and another 480,000
units will be supplied to the Slovak plant. With this order, POSCO International,
together with its subsidiary POSCO Mobility Solutions,
has secured contracts to supply a total of 11.87 million units of traction
motor core to Hyundai Motor Group and Kia.
The permanent magnets involved in the contracts will be sourced
from the U.S., Australia, and Vietnam while avoiding the use of rare
earths from China. They will be produced by Star Group Ind. Co.,
Ltd., the sole manufacturer of rare earth permanent magnets in Korea.
According
to an article in the Korea Economic Times, the two parties
Global production of traction motor cores a key element in the
strategy
In addition to these permanent magnet
orders, the company is intent on
expanding its value chain to strengthen
its position as a core part manufacturer
for the drive control system of
eco-friendly vehicles. A key element
of the strategy is to package and supply
all the parts required for the rotor
and stator of the traction motor core―
key components of the electric vehicle drive control system―to both
domestic and international automakers. The rotor contains permanent
magnets that generate the necessary magnetism for rotation in
addition to the shaft that handles rotation. The stator is the component
that surrounds the rotor from the outside.
have engaged in negotiations with the state governments of Texas,
Tennessee and Arizona to decide the location of their joint permanent
magnet manufacturing factory in the U.S. with an initial production
capacity of 3,000 tons a year, which would be later expanded
to 5,000 tons a year, enough to power 2.5 million electric vehicles.
They are said to be investing up to 300 billion won ($147 million) to
build the factory. They are expected to supply permanent magnets
from the factory to the top three US automakers -- General Motors,
Ford Motor and Stellantis in addition to supplying plants in America
of Hyundai and Kia.
The permanent magnet orders hold significant value for the company,
explained the company. Not only are they viewed as a milestone
in expanding its stable mobility business through large-scale
orders, but also as a step towards establishing a supply chain for
the permanent magnet market that excludes China, a market where
Chinese rare earths market share is at least 90 percent.
" These orders mark a significant milestone as we enter the global
market by collaborating with a domestic company in the rare earth
permanent magnet market, which is largely monopolized by China, "
remarked a POSCO official. " We are currently in discussions with
several automakers and traction motor manufacturers for additional
orders and are optimistic about future business expansion. "
Earlier this year, Posco unveiled its plans to build a complete global production
cluster for traction motor cores with new plants in Poland and
Mexico. The system for annual production and sales of more than 7 million
units will be completed by 2030, said Lee Kye-In in his inaugural
10 Magnetics Business & Technology * November/December 2024
www.MagneticsMag.com
http://www.MagneticsMag.com
Magnetics Business & Technology - November/December 2024

Table of Contents for the Digital Edition of Magnetics Business & Technology - November/December 2024
