Posco wins W300b EV parts deal with US carmaker

Posco International announced Wednesday it has signed a contract worth 300 billion won ($229 million) to supply electric vehicle parts to an American manufacturer, ramping up its presence in the green vehicles industry.

Under the contract, Posco International will supply electric vehicle reducers to a major automaker based in the US from 2024 until 2032. The company declined to reveal the name of the client, citing deal conditions.

A reducer can adjust the rotational speed to increase the torque, or rotational power of the engine, which helps boost the acceleration that propels the vehicle.

This contract follows a deal sealed last month worth 100 billion won to supply automotive parts to HYVIA, a joint venture established by Renault Group and Plug Power dedicated to hydrogen fuel cell mobility.

Posco International also aims to discuss additional supply orders for essential EV components, such as permanent magnet motors and rotor shafts, strengthening the value chain for green car parts.

“In response to the net zero emissions era, we are rapidly moving away from the existing internal combustion engine and foraying into the green vehicles industry,” a Posco International official said.

“Growing as a leading automotive parts supplier for eco-friendly cars, we aim to cooperate with the nation’s small enterprises and steer to our ultimate goal to build a manufacturing plant in North America.”