POSCO International has succeeded in securing large-scale orders through overseas corporations while establishing a supply chain for rare earth permanent magnets outside of China.

POSCO International America announced on the 12th that it recently received an order for permanent magnets worth approximately KRW 900 billion from a North American global automaker and will supply them from 2026 to 2031.

The supplied permanent magnets will be installed in the drive motors of the company's new mid- to large-sized electric vehicle models.

In addition, POSCO International's German subsidiary signed a permanent magnet supply contract worth approximately KRW 260 billion with a European premium automobile brand from 2025 to 2034.

The permanent magnets ordered by overseas corporations this time are planned to use raw materials procured from the United States, Australia, Vietnam, and other countries, rather than rare earth elements from China.

The production of permanent magnets will be entrusted to Seonglim Advanced Industry, the only rare earth permanent magnet manufacturer in Korea.

Rare earth permanent magnets are a type of magnet used in drive motors, the heart of electric vehicles.

Rare earth permanent magnets are used in more than 80% of electric vehicle drive motors because their magnetic force is several to tens of times stronger than that of regular magnets.

This contract to supply permanent magnets through POSCO International's overseas corporations is evaluated as killing two birds with one stone in that it not only means 'stable expansion of the mobility business through large-scale orders' but also 'establishment of a supply chain outside of China' in the permanent magnet market, where Chinese rare earth elements account for over 90%.

In addition to this permanent magnet order, POSCO International plans to expand its value chain to strengthen its position as a supplier of key components for eco-friendly vehicle drivetrains.

In addition, we plan to package all the parts necessary for the rotor and stator that go into the drive motor core, which is a core component of the electric vehicle drive system, and supply them to global automakers as well as domestic companies.

In addition to the shaft that serves as the axis of rotation, the parts that go into the rotor include permanent magnets that create the magnetism necessary for rotation, and the stator is a component that surrounds the rotor from the outside.

A POSCO International official said, “This order is particularly meaningful in that it marks our entry into the global market through collaboration with a domestic company in the rare earth permanent magnet market, which is virtually monopolized by China.” He added, “We are currently in discussions for additional orders with a number of automakers and drive motor manufacturers, which will provide good opportunities for future business expansion.”“The news is expected,” he said.