POSCO INTERNATIONAL : breaks $400 million in electric vehicle parts orders

- After signing the $55 million contract with VINFAST in 2020, successfully procured the third electric vehicle parts order recently
- Market share expansion through the securing of a stable supply chain and demand source relative to the rapid growth of the electric vehicle market

POSCO INTERNATIONAL, which is moving away from the traditional trading business structure and transitioning to the future industry, has become a strong player in the eco-friendly mobility business as it continues to procure electric vehicle parts orders recently.

POSCO INTERNATIONAL revealed on the 12th that the global electric vehicle parts order exceeded $500 million as it recently signed a contract to supply electric vehicle parts for the third time with VINFAST, a Vietnamese electric vehicle company.

POSCO INTERNATIONAL signed contracts with VINFAST for $55 million in the second half of 2020 and $93 million in the first half of 2021 as well as a contract for parts for $170 million with Rivian, a new US electric vehicle company, and has exceeded $400 million in the global electric vehicle parts order for the past 1 year.

The Halfshaft that will be supplied this time is a key part that acts as a drive shaft in battery electric vehicles (BEV).

It is evaluated that POSCO INTERNATIONAL was able to strengthen its dominance in the emerging electric vehicle parts market due to its accumulated sales know-how, global network, and continuous practice of shared growth with small and medium-sized auto parts companies.

According to a market research firm, Marklines, recently, the proportion of electric vehicles in the global vehicle production in 2021 was about 20%, but in 2025, it is expected to increase to about 40%. Among automakers such as Hyundai Motor, Kia, Daimler, and Volvo have announced that they will release only electric vehicles from 2025, so the electric vehicle market is expected to grow rapidly from 2025.

With the rapid growth of the electric vehicle market, the parts market is also expected to expand around EV motor parts and EV Traction parts. In particular, growth is expected in North America and Europe, where eco-friendly vehicle policies are supported. In response, POSCO INTERNATIONAL will secure a stable supply chain based on cooperation with domestic parts companies and continue to expand its global EV parts market share.

A POSCO INTERNATIONAL personnel said, "In addition to VINFAST and Rivian, we are expected to receive additional orders from famous global electric vehicle companies. We will also contribute to ESG management by solidifying our market share in the electric vehicle parts market in the future," he said.

Meanwhile, in response to the rapid paradigm change centered on future cars such as electric and hydrogen cars, POSCO INTERNATIONAL has selected the Traction motor core business as a strategic business and is proceeding with concentrated investment. The strategy is to establish a production base in Europe within this year following the equity participation in POSCO-CORE in China and establishment of a production corporation in Mexico.

It revealed that, through this, it will prepare for the future mobility business by expanding its global market share to 20% and by establishing a production system for a total of 4 million vehicles by 2025, including 2 million vehicles in Korea, 900,000 vehicles in China, 650,000 vehicles in North America, and 450,000 vehicles in Europe.