POSCO International Surpasses $400 Million in Orders for Electric Vehicle Half Shaft Parts

[Asia Economy Reporter Ki-min Lee] POSCO International announced on the 13th that its global order amount has surpassed $400 million after recently signing its third supply contract worth $85 million for electric vehicle parts halfshafts with Vietnamese electric vehicle company VinFast.

Previously, POSCO International signed supply contracts with VinFast worth $55 million in the second half of 2020 and $93 million in the first half of last year. Additionally, it secured a parts contract worth $170 million with the emerging American electric vehicle company Rivian.

The halfshaft supplied this time is a key component that functions as the drive shaft in battery electric vehicles (BEVs). As the electric vehicle market rapidly grows, the parts market is also expected to expand, focusing on EV motor parts and EV drive parts. According to market research firm Marklines, although the proportion of electric vehicles among global vehicle production was about 20% last year, it is expected to increase to approximately 40% by 2025.

POSCO International plans to secure a stable supply chain based on cooperation with domestic parts manufacturers to respond to demand in North America and Europe, regions that are policy-wise supporting eco-friendly vehicles, and to continuously expand its global electric vehicle parts market share.

A POSCO International official stated, "In addition to VinFast and Rivian, we expect additional orders from other globally renowned electric vehicle companies," adding, "We will solidify our market share in the electric vehicle parts market and contribute to ESG (Environmental, Social, and Governance) management."

Meanwhile, POSCO International is responding to the rapid paradigm shift toward future vehicles such as electric and hydrogen cars by selecting the drive motor core business, another electric vehicle part, as a strategic business and making focused investments. Following equity participation in POSCO A in China and the establishment of a production corporation in Mexico, the company plans to establish a production base in Europe within this year.

Through this, POSCO International aims to build a production system of 4 million units by 2025, including 2 million units domestically, 900,000 units in China, 650,000 units in North America, and 450,000 units in Europe, and to expand its global market share to 20%.