POSCO International Corp, the trading arm of South Korean steelmaker POSCO, is set to build a plant in Mexico for the production of traction motor cores for electric vehicles to cover the North American market and take advantage of the benefits of T-MEC.

The steering committee established a production plant in Ramos Arizpe, Coahuila, with an investment of 43.6 million dollars.

The company plans to expand the investment to more than $ 136 billion by 2030 to create a production outpost for traction motor cores.

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"We decided to make this investment to target North America, the largest market for electric vehicles, and strategically prepare for the US government's green mobility policy," said POSCO International.

The construction of the plant will begin in June 2022 and is expected to be completed in the second half of 2023. The initial production volume will be 300 thousand units per year, which will increase to 1.5 million units by 2030.

POSCO International said it selected Mexico as the production base, considering the US government's restrictions on imports of electrical steel, a raw material used in traction motor cores, and the logical competitiveness.

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'We will use our Mexican production subsidiary as an outpost for the production of electric vehicle components. By combining our years of overseas investment experience, POSCO's technological competitiveness and material capabilities, we will play a key role in realizing the group's carbon neutrality goal, 'said a POSCO International official.

In Solili you can consult industrial warehouses available in Monterrey, Tecate and Mexicali

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