[Click eStock] "POSCO Kangpan Collaborates with POSCO Group on Electric Vehicles... Responsible for Body and Battery Cover"

[Asia Economy Reporter Hyungsoo Park] Research Alom forecasted on the 22nd that POSCO Coated & Color Steel could see performance improvement due to product price increases and supply of parts for electric vehicles. They suggested a target stock price of 28,500 KRW.

Choi Seonghwan, Senior Researcher at Research Alom, explained, "POSCO Coated & Color Steel processes cold-rolled steel sheets into color and coated steel sheets for sale," adding, "Profit improvement is underway as the rise in raw material prices is passed on to selling prices."

Due to expanded infrastructure investments by governments worldwide and increased demand for automobiles and home appliances, a shortage of steel sheets has occurred. The price of cold-rolled steel sheets, which was below $600 per ton last year, has exceeded $900 this year.

Senior Researcher Choi said, "We expect a 'surprise performance' in the first half of this year due to expanded price spreads and yield improvements," and analyzed, "It is expected to be re-evaluated as it records the highest quarterly performance ever."

He stated, "Through strategic collaboration among POSCO group companies, we are negotiating entry into the electric vehicle and secondary battery markets and supply of body chassis battery covers for electric vehicles."

He emphasized, "The ‘AL HPF (High-Pressure Formed Aluminum Body)’, a lightweight component for automobile body chassis, is about to be expanded from internal combustion engine vehicles to electric vehicles."

Researcher Choi added, "We have developed a battery pack cover for electric vehicles that enables cost reduction while maintaining excellent safety, and are currently negotiating supply with major overseas automakers."

POSCO Coated & Color Steel developed ‘ALCOSTA’, an ICB (Inter Connect Board) cover for electric vehicle battery packs. Compared to existing sheets made entirely of aluminum, ALCOSTA adopts an aluminum plating method, enabling cost reduction. It has the advantage of high ignition point and excellent safety.