Posco International began construction of its new traction motor core plant in Brzeg, Opole Voivodeship, Poland on Tuesday, the company announced Wednesday.

A traction motor core is a crucial component in the powertrain systems in most eco-friendly vehicles, except the ones powered by traditional combustion engines.

Construction of the new factory in Poland, which will be built on a 100,000-square-meter land plot, will be completed in mid-2025. The goal is to begin commercial production of traction motor cores in the second half of next year.

The Polish plant will begin commercial operation by producing traction motor cores for around 1 million EVs that Korea’s top two automakers -- Hyundai Motor and Kia Motors -- will produce at their plants in Turkey and Slovakia.

Posco International added the company would also forge new partnerships with European EV makers and plans to ramp up the Polish plant’s annual motor core production to 1.2 million units by 2030.

“It is meaningful to secure a production base in Europe, the forefront of the eco-friendly automobile industry,” an official from Posco International said. “(Posco International) will increase its cooperation with European automakers to step up as a global eco-friendly car parts marker.”

Posco International expects that its Polish plant’s production will continue to increase in the future in line with Europe’s increasing demand for EVs and hybrid vehicles. According to the European Automobile Manufacturers' Association's data, European sales of hybrid vehicles in 2023 increased 28 percent on-year to reach 3.4 million units.

With the Polish plant, Posco International also aims to increase its annual traction motor core production capacity to 7.1 million units by 2030, which will account for 10 percent of the global market for traction motor core.

Posco International currently has traction motor production sites in South Korea's Pohang, Mexico and India.