Posco International, the trading and energy division of South Korean steel company Posco Group, has announced plans to build a plant in the United States to produce permanent magnets for electric vehicle (EV) drivetrains in partnership with Star Group Industrial, a South Korean company specializing in rare earth elements.
Over the past few years, Posco has rapidly expanded into the rapidly growing EV supply chain, making significant investments in the mining and processing of key minerals used in EV battery cathodes and anodes, such as lithium, nickel, cobalt and graphite.
Permanent magnets use rare earth elements and are important components in electric motor cores. The quality of the magnet affects the performance of the motor.
Posco Mobility Solution is a major global manufacturer of motor cores.
Posco and the Star Group were believed to be in talks with the state governments of Texas, Tennessee and Arizona about the location plant location. They wanted to jointly invest 300 billion won (US$220 million) in a plant with an initial production capacity of 3,000 tons of permanent magnets per year, and then increase it to 5,000, enough to produce 2.5 million electric vehicles.
Expected buyers of American-made magnets include divisions of Hyundai Motor Group in the USA, General Motors, Ford and Stellantis.
