POSCO Inter supplies electric vehicle half-shafts to US startup... valued at 145 billion KRW

340,000 Electric Vehicles Equipped
"Establishing a Foundation for Future Business Expansion by Applying Major Client's Electric Vehicle Manufacturing Platform"

[Asia Economy Reporter Ki-min Lee] POSCO International is strengthening its position in the global electric vehicle market by consecutively securing orders for electric vehicle parts.

On the 2nd, POSCO International announced that it had secured a supply contract for electric vehicle half-shafts from a North American emerging electric vehicle startup, in collaboration with the domestic mid-sized auto parts company Irae AMS. The half-shaft is a key component of battery electric vehicles, serving as the drive axle that transmits the driving force from the drive motor to both tires.

Through this order, the volume supplied by POSCO International amounts to half-shafts for approximately 340,000 electric vehicles, valued at about 145 billion KRW. Including the initial contract for 20,000 units signed with the same customer last August, a total of 360,000 units will be supplied starting next year after detailed adjustments and testing.

In addition to this upcoming supply, POSCO International, together with Irae AMS, secured orders for electric vehicle parts worth about 64 billion KRW from Vietnamese electric vehicle startup VinFast in the second half of last year, and about 52.5 billion KRW from another North American emerging electric vehicle startup in the first half of this year.

POSCO International explained that this momentum is expected to enable both companies to continuously expand parts supply to over 250 customers across more than 70 countries worldwide.

Furthermore, POSCO International is accelerating its drive motor core business. It is currently expanding facilities with an investment of 22.9 billion KRW domestically, and recently decided to invest 58.6 billion KRW in its Chinese production subsidiary, thereby expanding production bases both domestically and internationally. Through this, it plans to establish a production system capable of manufacturing 2 million units domestically and 2 million units overseas by 2025, securing a total of 4 million units and increasing its global drive motor market share to 20%.

Alongside the drive motor core, the company is also expanding its business in magnet and reducer parts, which are key components of the e-powertrain, in cooperation with domestic small and medium-sized parts manufacturers.

A POSCO International official stated, "The products supplied this time are expected to be applied to the customer's main electric vehicle manufacturing platform, which means we have secured a favorable position for future business expansion, and it is significant that a foundation has been established to lead to localization, investment, and further business growth."

This content was produced with the assistance of AI translation services.