Posco Inter wins $145 million electric vehicle parts order from US Rivian

[Asia Economy Reporter Ki-min Lee] POSCO International announced on the 23rd that it has secured an order worth 145 billion KRW for half shafts, electric vehicle parts, from Rivian in the United States, together with the domestic mid-sized automotive parts company Irae AMS.

The half shaft is a key component that functions as the drive shaft in battery electric vehicles (BEVs). The drive shaft transmits the driving force from the drive motor through the reducer to both tires.

The American electric vehicle startup has recently experienced rapid growth and is considered a rival to Tesla. The company expects to play a leading role in the electric vehicle supply chain market through this order.

POSCO International plans to start supplying half shafts for approximately 360,000 vehicles, including the initial contract for 20,000 units signed with Rivian in August last year, after detailed adjustments and testing, beginning next year.

Irae AMS, which secured the Rivian order together with POSCO International, is a parts manufacturer specializing in vehicle drive, braking, and steering components. It supplies parts not only to domestic automakers but also to leading automotive companies in the United States, Germany, France, and other countries.

A POSCO International official stated, "This supply marks a significant milestone in securing a favorable position for expanding our electric vehicle parts business in the future, and it lays the foundation for proceeding with localization and investment processes. Besides this order, we are actively pursuing new program orders from Rivian and view the possibility of additional parts orders very positively."