POSCO International Secures Third Electric Vehicle Parts Order from US-based Rivian

Electric Vehicle Parts Orders Total 400 Billion KRW Over 2 Years

[Asia Economy Reporter Yu Je-hoon] POSCO International announced on the 2nd that it has signed an electric vehicle parts supply contract with the emerging electric vehicle company Rivian. With this, POSCO International has succeeded in securing its third order from Rivian, following orders in August last year and September this year.

The product POSCO International will supply through this order is approximately 90,000 units of output shafts from Myeongcheon Industry, valued at 6 million USD (about 7.1 billion KRW). Previously, POSCO International signed a supply contract for AMS half shafts worth about 145 billion KRW with Rivian in August last year and September this year.

Rivian is one of the fastest-growing electric vehicle startups in the global automotive industry recently. Unlike Tesla, which focuses on sedans and passenger cars, Rivian's main models are pickup trucks and sport utility vehicles (SUVs). Recently, Amazon, the world's largest online retailer, announced plans to purchase 100,000 electric vehicles from Rivian by 2030. According to the company, POSCO International's role is expected to expand alongside Rivian's growth.

The output shaft supplied to Rivian is a key component of the electric vehicle drive axle, responsible for transmitting power from the drive motor to both wheels. Myeongcheon Industry, which manufactures the product, is a small and medium-sized enterprise that started with agricultural machinery parts in 1983 and now specializes in automotive transmission parts and electric vehicle reduction gear parts.

A POSCO International official stated, "In addition to this order, we are pursuing new orders from Rivian. Especially, since the product supplied this time will be applied to Rivian's main electric vehicle manufacturing platform, we can say that we have secured a favorable position for future business expansion."

Meanwhile, since last year, POSCO International has received orders from Vietnamese automobile company VinFast for AMS half shafts (about 64 billion KRW) and permanent magnets for drive motors from Seongrim Advanced Industry (about 129 billion KRW). Including the parts contract with a North American startup in the first half of this year (about 52.5 billion KRW) and this Rivian order, the total order amount reaches approximately 400 billion KRW over two years.

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