Core parts for hydrogen fuel cell electric vehicles built by POSCO Mobility Solutions, a subsidiary of POSCO International. Courtesy of POSCO International
By Kim Hyun-bin
POSCO International has exceeded $400 million (474.8 billion won) in total amount of electric vehicle (EV) parts sales globally.
POSCO International announced that it had signed an $85 million (100.9 billion won) supply contract for EV parts with VinFast, a Vietnamese automotive manufacturer and EV company. With this contract, the total amount of orders for EV parts worldwide with POSCO International has exceeded $400 million.
This is the third time POSCO International has signed a supply contract with VinFast, following $55 million in the second half of 2020 and $93 million in the first half of last year. The latest deal helped the company reach a total of $400 million in global EV part orders, including signing a $170 million parts contract with Rivian, an American EV carmaker and automotive technology company.
With this contract, POSCO International will supply Vinfast with a half-shaft, a key component that plays the role of a drive shaft in a battery electric vehicle (BEV). POSCO International is growing its influence in the EV parts market by utilizing its global network and co-prospering with small and medium-sized vehicle component companies.
The company is also working to build an overseas supply chain. POSCO International plans to establish a production base in Europe within the year following the establishment of one in Mexico. The goal is to expand the global market share to 20 percent by establishing a production capability for a total of 4 million components by 2025, including 2 million in Korea, 900,000 in China, 650,000 in North America and 450,000 in Europe.
According to market research firm Marklines, the proportion of EVs in global vehicle production is expected to increase from about 20 percent last year to about 40 percent in 2025. Among carmakers, Hyundai Motor, Kia, Daimler and Volvo announced that they would release only EVs from 2025, suggesting that the electric vehicle market will grow rapidly from 2025. As the EV market grows rapidly, the parts market is also expected to expand significantly.
"In addition to VinFast and Rivian, we are expected to receive additional orders from famous global EV companies," a POSCO International official said.
