POSCO International to Build US Magnet Factory for EV Business Expansion

POSCO International Corp. is advancing its U.S. footprint with plans for a permanent magnet factory. While the exact location remains undecided, the Texas, Tennessee, and Arizona state governments are in discussions with the South Korean steel conglomerate. Once operational, the plant will boast an initial production capacity of 3,000 tons annually, further amplifying POSCO's global influence.

POSCO International said it will construct the permanent magnet factory in partnership with the Star Group Industrial Co. Through this project, the South Korean steel maker is also expanding its presence within the electric vehicle supply chain. It was noted that this sector is one of the company's top seven growth drivers beyond its steel business.

Details About the Permanent Magnet Plant

According to The Korea Economic Daily, POSCO International, the group's general trading and energy exploration division, intends to construct the factory to manufacture permanent magnets, an important component in the EV drive motor core.

This joint venture with Star Group was revealed on Tuesday, Oct. 3. Now, to decide where to build the permanent magnet factory in the U.S., the two companies are reportedly still in talks with the state governments of Texas, Tennessee and Arizona.

Once opened, the plant is expected to have an initial production capacity of 3,000 tons annually. As the operations continue, POSCO will increase to 5,000 tons a year, enough to power at least 2.5 million units of electric vehicles.

Potential Customers for Permanent Magnet Supply

POSCO International and Star Group may supply the permanent magnets to the leading vehicle manufacturers in the U.S. The top three names are Ford Motor Co., General Motors Co., and Stellantis NV. The partners may also offer their products to South Korean auto companies - Hyundai Motor Co. and Kia Corp., which both have manufacturing plants in the U.S., as per Seoul Daily.

Photo by: Posco International PR Center