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POSCO Int’l to supply components to Vietnam’s first electric vehicle

POSCO Int’l to supply components to Vietnam’s first electric vehicle

Posted October. 14, 2020 07:41,   

Updated October. 14, 2020 07:41


A South Korean auto component manufacturer will supply auto parts to Vietnam’s first electric vehicle (EV). POSCO International said on Tuesday that homegrown auto part maker Erae AMS has signed a deal with a Vietnam automotive manufacturer to supply components for 100,000 EVs.

Posco will supply halfshaft, which serves as a drive shaft in EVs. It transmits the driving force generated from the engine to both tires through the transmission.

Vietnam’s first automaker VinFast is planning to start the production of EVs from next year. VinFast, which was established by Vietnam’s largest conglomerate Vingroup, aims to mass produce its first EV next year. Erae AMS is a South Korean medium-sized company specializing in producing auto parts related to driving, brakes, and steering and has been exporting its parts to the U.S. since 2011.

“We have recently established the Environmentally-friendly Vehicle Group to aim for the EV market,” said a POSCO international official. “Taking the opportunity of winning a supply order for EV, a strategic vehicle of the future, we expect to expand our business and investment in Vietnam.”

POSCO International has been supplying auto parts manufactured by POSCO SPS to European auto parts companies. POSCO’s world-class electric steel plate is used in the motor core, which is a core part of the driving motor in EV. POSCO International is planning to expand its customer base and target models by utilizing its sales network in Europe starting from next year.

Hyung-Seok Seo skytree08@donga.com