POSCO International has embarked on expanding its electric vehicle component business by signing a contract worth 1.16 trillion won (US$882.46 million) for the supply of rare earth permanent magnets for electric vehicles.
The company announced on March 12 that its U.S. subsidiary has recently secured a contract worth 900 billion won for permanent magnets with a global automaker in the North American region. It plans to continue product development, including sample supply and customer verification, until scheduled mass production and supply in the first half of 2026. The supply period extends until 2031 and the magnets are expected to be used in new large-scale electric vehicle models.
POSCO International has also secured a supply contract worth 260 billion won in Europe. The German subsidiary will supply magnets to a European luxury car brand from 2025 to 2034 over a period of 10 years. With this contract combined, the total value of permanent magnet orders recently secured by POSCO International amounts to 1.16 trillion won.
The recently procured permanent magnets are crafted from rare earth elements and are incorporated into the electric vehicle’s driving motor, serving as its engine. These magnets possess magnetic strength several to tens of times greater than standard ones, thereby enhancing the driving motor’s performance. It’s worth noting that over 80 percent of electric vehicle driving motors rely on rare earth permanent magnets.