The 2018 North American International Auto Show brought the biggest names in the auto industry together for a show and tell. (Source: News Atlas)

Continuing on what we saw during the past few years, the focus this year again was on improving safety, performance and design, all at the lightest weight possible for fuel economy. While there have been debates in the past about the best lightweight material, there was a clear winner at this year’s NAIAS. Almost every car, including the 2018 Car of the Year, was clad in advanced high-strength steel (AHHS) and significantly lighter than their predecessors.

Take a look at some of this year’s steel-clad cars.

SEE ALSO: 5 Reasons Why AHSS Tops the Market for Lightweight Auto Materials

2018 Car of the Year: Honda Accord

The 2018 Honda Accord took home the prestigious title of Car of the Year due to its lightweight and improved strength and performance. The 2018 model contains 29 percent ultra-high-strength steel (UHSS) in its chassis and 54.2 percent high strength steel (HSS). With these applications, the Honda Accord achieved a weight reduction of 110 to 176 pounds while improving its body torsional rigidity by 32 percent and its bending rigidity by 24 percent.

2019 Chevy Silverado

The all-new Chevy Silverado comes armed with plenty of steel. One of the features that contribute to its improved safety is the bed floor made of roll-formed HSS. Also, 80 percent of its fully-boxed steel frame is made of HSS and AHSS forms the Silverado’s safety cage. Overall, the new model is taller and 7 inches wider than before. Nevertheless, the all-new Silverado is 450 pounds lighter with a 10 percent increase in torsional rigidity than the previous model.

2019 Dodge Ram 1500

The 2019 Dodge Ram 1500 is another steel-intensive vehicle revealed at NAIAS. About 98 percent of this year’s model is made from HSS, and is the lightest, longest and most efficient frame in the half-ton truck segment. The wheelbase and crew cab is 4 inches longer than the previous model. The Dodge Ram 1500 also has several new safety features. The unique front-splayed frame rail technology, frame-mounted HSS tire blockers and fully-boxed side rails allow the car to absorb more energy in case of impact and minimize structural damage.

2019 Kia Forte

The 2019 Kia Forte is taller, wider and longer than before with 54 percent of its chassis made of AHSS. It also has a 16 percent stiffer body-in-white and the new seat frames are lighter yet stronger as Kia has its eyes on top ratings from the Insurance Institute for Highway Safety (IIHS) for the second consecutive year. The lighter and stronger vehicle will consume about 9 to 20 percent less fuel as well as drop noise levels by 5 decibels.

Why the Steel Overload?

As mentioned above, the latest cars are steel-intensive and automakers increasing the amount of HSS, UHSS and AHSS in their mix of materials. Of course, the main reason for this is steel’s innate properties that make it the ideal solution for automakers looking to cut back on weight and still satisfy safety standards. However, automakers also learned a good lesson from automakers who chose another popular lightweight material – aluminum.

SEE ALSO: Materials Matter: Why Steel Beats Aluminum in the Sustainability Debate

Back in 2014, Ford released its F-150 with an all-aluminum body. The move was bold and the cars sold fast as it was a whole 700 pounds lighter than previous models. Consumers got to drive away with a drastically improved fuel economy, but it didn’t take long for them to realize the big, expensive problem with aluminum bodies: repairs.

The 2015 Ford F-150 has an all-aluminum body. (Source: Hennessey Performance)

Although steel and aluminum are similar in terms of its lightweight properties, aluminum reacts differently than steel under heat. Aluminum does not have metal memory, while steel does, making it hard to reshape and repair following an accident. Welding aluminum also takes much more skill and precision than steel, and there are few repair shops that are equipped to handle aluminum. As a result, drivers not only have a hard time finding repair shops for their aluminum cars, they have to pay a hefty price for repairs compared to repairs for steel cars. For example, Jalopnik reported one of the first cases of the F-150 repairs back in 2015 cost USD 17,000 and a month-long repair time.

Of course, this was a rare case highlighting the steep learning curve of repairing aluminum vehicles, but it also highlights the fact that steel is still the norm when it comes to automotive materials, and judging from the 2018 NAIAS, it’s going to stay that way for quite some time.

Cover photo courtesy of Honda of Lincoln.

CEO Kwon explores CES 2018

As such, CEO Kwon made his first official visit to the 2018 Consumer Electronics Show (CES) in Las Vegas earlier this month to stay on top of the latest trends in connectivity and smart solutions that can be applied to the manufacturing process in smart factories.

SEE ALSO: POSCO CEO Ohjoon Kwon Visits CES 2018

Ultimately, a smart factory for POSCO would entail using smart sensors to pick up data, smart analysis through AI and automated production processes. Moreover, the smart factory would store and analyze its big data and apply it to make future improvements and prevent malfunctions. Aligned with many of POSCO’s business growth engines, major topics and themes at CES 2018 included smart homes, smart cities, autonomous cars and AI, and more than 3,900 companies put forth their best innovations.

Smart Connectivity

As more and more cities undergo smart transformations, the next big trend will be data collection and analysis through 5G connectivity. It was no surprise to see numerous innovations in smart transportation, smart grid, public safety, healthcare, data analytics and more at CES 2018. Moreover, city officials from early-adapting cities such as Kansas City, Miami and Las Vegas took to the stage to discuss their cities’ smartization plans. Some of the topics discussed included using GIS mapping software, smart construction, inclusive technology and autonomous transportation to enhance citizens’ productivity, efficiency, safety and well-being.

CES 2018 was a platform for smart city discussion. (Source: Bosch)

CEO Kwon visited related booths to learn about new technologies POSCO could apply to its businesses. Currently, POSCO’s smart factories are run by POSCO ICT’s smart platform called PosFrame, which allows the factory to apply a digital genome map to operations via data collection, instantly convert smart factory initiatives in domains, act as a common platform for new technologies and apply the same, standardize smart factory model to other facilities through reusable software.

Also at this year’s CES, POSCO ICT signed an MOU with DPR Construction, a leading smart construction company to apply PosFrame to construction sites for more efficient, cost-effective and smarter construction processes.

Smart Transportation

Another major theme at this year’s CES was mobility. Namely, autonomous and electric mobility. Companies from all across the board from traditional car manufacturers and software companies to gaming companies lined up to showcase their new innovations.

Even as the market for sustainable EVs and autonomous EVs look to expand in 2018 and beyond, EVs only make up about 1 percent of the global fleet of cars and there’s still a ways to go before EVs become the norm. Drivers need to feel safe in their EVs or autonomous EVs, want greater range on a single charge and need to see more charging infrastructure in their communities before making the switch.

SEE ALSO: Ask an Expert: Electric Vehicles and the Future of the Automotive Market

What’s more is that just because a vehicle runs on electric batteries, it doesn’t automatically mean the vehicle is eco-friendly or transmits less harmful emissions. Manufacturers and consumers alike have to take a lifecycle approach to assess the car’s impact on the environment from production to end of life recycling.

POSCO works with numerous partners to develop leading solutions for electric vehicles.

That’s why POSCO is working with automakers to come up with vital solutions in the auto industry for a greener future. It supplies partners with an advanced high-strength steel (AHSS) called POSCO GIGA STEEL that is both lightweight and super strong, allowing cars to travel with less energy without compromising passenger safety.

POSCO is also a lithium provider and has developed an innovative technology to speed up the extraction process, saving time, costs and damage to the environment. It also works with car makers to apply premium electric steel to partners’ electric motors to increase efficiency and cut costs.

With so many exciting new innovations and technologies surrounding EVs, POSCO will undoubtedly play a significant role in ensuring automakers have the tools they need to realize a green future.  POSCO will work to stay ahead of newly emerging technologies to enhance the efficiency, sustainability and performance of all of its solutions.

More and more automakers are adding EVs to their fleet. (Source: Engineering and Technology)

While all this sounds promising for the environment, EVs don’t automatically translate into lower GHG emissions. According to World Auto Steel (WAS), the emissions from vehicle production will be greater than the amount of emissions from driving. As such, it is becoming increasingly important for manufacturers, policymakers and consumers alike to view material options by considering its life cycle assessment (LCA).

World Auto Steel Case Study

WAS conducted a case study in which they compared two popular lightweight materials for EVS; aluminum and Advanced High-Strength Steel (AHSS). The study followed the University of California Santa Barbara Automotive Energy & GHG Model (UCSB Model) for a comprehensive analysis of each material’s total energy use throughout its entire life cycle, from production to end of life recycling. For the study, WAS examined 1,000,000 BEVs of equal range that were made up of either entirely aluminum or AHSS.

BEVs made of AHSS require over 15 percent less energy than aluminum cars. (Source: World Auto Steel)

The study found that automakers can make over 17 percent more BEVs made of AHSS than aluminum BEVs with the same amount of energy. In other words, with the energy it takes to make 1 million aluminum BEVs, automakers can make 1.17 million AHSS BEVs.

Why is AHSS More Energy Efficient?

Aluminum production requires 8 times more energy per kilogram than steel production because the production process of aluminum is much more complicated and involves more steps than steel production. The aluminum BEVs in the study used up 30 percent more energy than those made from AHSS throughout its entire life cycle. Plus steel is 100 percent recyclable and can be reused almost indefinitely.

There are many sources of emissions output involved in the entire life cycle of a vehicle. (Source: World Auto Steel)

This poses a serious need to reexamine existing policies and regulations that only seek to reduce tailpipe emissions. By also taking into account emissions from the production of materials all the way to how a car is disposed at the end of its life cycle, automakers can grasp a better picture of the real impact of their choices on the environment.

A Sustainable Choice

As a solution-providing partner for automakers, steelmaker POSCO designed the perfect AHSS for cars that is lightweight, extremely strong, highly formable and environmentally friendly. POSCO GIGA STEEL belongs to the highest category for tensile strength of greater than 1GPa (Gigapascal). It can withstand more than 100 kg of force per square millimeter, making it 3 times stronger than aluminum. It is also 3.5 times cheaper than aluminum and 2.1 times cheaper to manufacture.

SEE ALSO: Infographic: Driving the Future with POSCO GIGA STEEL

POSCO GIGA STEEL is three times stronger than aluminum.

In 2016, POSCO sold 9 million tons of steel sheets for cars, making up 10 percent of the entire global automotive market for steel sheets. POSCO GIGA STEEL was designed to further improve the performance and efficiency of POSCO’s auto partners around the world. As the auto industry heads towards a future where environmentally-friendly EVs become the norm, POSCO will strive to equip its auto partners with the materials and tools necessary to stay ahead and competitive.

POSCO GIGA STEEL –  For Automakers

POSCO GIGA STEEL is like the iPhone X or the latest Xbox or PlayStation for automakers. It’s the newest, hottest must-have item for any type of car. Automakers are constantly working to lightweight their vehicles without compromising strength to meet increasingly stringent safety and environmental regulations. In order to offer its auto partners the ultimate solution, POSCO developed POSCO GIGA STEEL, an advanced high-strength steel (AHSS) that comes in 6 different types for a variety of applications in vehicles.

POSCO GIGA STEEL can be applied to different parts of a vehicle chassis. (Source: Renault Samsung)

Applying AHSS, including POSCO GIGA STEEL, resulted in a 26 percent reduction in the total weight of a vehicle. Not only that, POSCO GIGA STEEL emits about 10 kg less carbon emissions than aluminum from a life cycle analysis (LCA) viewpoint. Plus, POSCO GIGA STEEL is about 2.1 to 3.5 times less expensive than alternative options like aluminum. It’s no surprise that leading automakers like Renault Samsung, Ssangyong Motors and GM Korea use POSCO GIGA STEEL, proving it to be the all-time favorite gift for automakers.

PosMAC- For Photovoltaic Structure Manufacturers

Solar energy is the fastest growing source of renewable energy in the world, according to the International Energy Agency (IEA). In India, solar electricity generation capacity quadrupled from 2014 to 2017 as it is the cheapest form of alternative fuel in the country. The government also plans to back the industry with USD 100 billion in investments. India is one of many countries looking to solar energy to meet their country’s environmental goals and stimulate the economy.

As a result, photovoltaic (PV) structure manufacturers around the world are working to keep up with the growing demand and gain a competitive edge with high-quality products. PosMAC is ideal for PV structures because it is highly corrosion resistant and cost-effective. Not only is the material itself lower in costs compared to other materials, PosMAC ensures a long lifecycle, decreasing maintenance costs to give manufacturers an added competitive edge. For such manufacturers, POSCO PosMAC steel is the perfect gift.

Magnesium- For Electronics Manufacturers

Magnesium is a common material in electronic devices such as laptops and smartphones. Magnesium is the perfect gift for electronics manufacturers such as LG and Samsung, as their competitiveness lies in delivering the most versatile, lightweight and convenient devices to their customers.

The Samsung Notebook 9 is one of the lightest laptops available. (Source: CNET)

Magnesium is also increasingly finding its way into the automotive industry, especially for electric vehicles (EVs), as magnesium plates and other parts allow automakers to further reduce the weight of the car. Magnesium will likely be the perfect gift for that manufacturer who is thinking ahead and always experimenting new ways to improve future models of their cars.

Hyper NO- EV Manufacturers

The market for EVs is one of the fastest growing, expected to expand from USD 27.84 billion in 2016 to USD 38.98 billion by 2021, at a compound annual growth rate (CAGR) of 7 percent. Much of the success of EVs lies in its motors that will determine the EV’s efficiency, performance and feasibility for wide-spread use. As such, POSCO came up with the perfect gift for EV manufacturers – the Hyper NO.

Hyper NO is a type of electrical steel used to make electric motors. POSCO’s new technology increases the magnetic flux density and reduces core loss of electric motors, making it the perfect gift for electric motor manufacturers looking for ultimate efficiency.

Stainless Steel Products- For Everyone

There are some gifts that satisfy just about everyone, like a gift card for the movies or the nearest cafe. It’s not super special, but it’s a safe and sure choice for anyone as it is practical and functional.

Stainless steel is the ultimate gift for manufacturers as it’s one of the most widely-used materials in the world for a variety of products including surgical tools, watches, kitchenware, buildings, pipes, artistic sculptures and plenty more. It’s literally the foundation of cities and communities all over the world, and without it, the world would not have the most basic systems in place today. Moreover, stainless steel’s non-corrosive and 100 percent recyclable characteristics make it one of the best gifts for every kind of manufacturer.

No matter the type, there is a perfect gift for every manufacturer with steel. POSCO will make sure to provide even more customized and innovative solutions for its partners and continue to “keep on giving” in the new year.

So, what happened to the EVs of the past, and how can the world prevent them from going the way of the dodo bird for yet a second time in history?

The Golden Age of Electric Vehicles

The first EV hybrid car was made in 1901 by Ferdinand Porsche, and by 1917, 38 percent of the cars on US roads were EVs, 40 percent were steam-powered cars and the remaining 22 percent were gasoline-fueled.

Porsche recreated the Semper Vivus, the first hybrid EV made by Ferdinand Porsche. (Source: Super Street)

At the time, horse-drawn carriages were the norm, and people were desperate to solve the “pollution problem,” meaning pollution in the form of horse droppings. Even then, EVs were seen as the solution for a clean environment, and from 1895 to 1920, 50 companies were producing EVs. However, gasoline-powered vehicles were also a viable option and increased in number along with EVs as more highways were built and people and goods started to travel greater distances.

A woman cranks her car on the streets of New York in 1923. (Source: Pinterest)

EVs had an initial advantage over gasoline cars for several reasons. They were more environmentally friendly, or the exhaust didn’t give off an awful smell, were less noisy and easier to drive. The shortcomings of gasoline cars also played a factor. Gasoline cars had to be started manually, or “cranked,” every time, making them laborsome and even dangerous to drive. Although they had better range, gasoline cars also broke down more often. The tables quickly turned.

SEE ALSO: Why Electrical Steel Can Make All The Difference In EV Motors

The Rise of Gasoline and Ford

The company that led the rise and dominance of gasoline cars was Ford and its Model T vehicles that sold for USD 650 versus EVs that sold for around USD 3000. When Ford mastered mass production with assembly lines, the company turned out 1,670,000 vehicles in 1923.

Ford’s Model T sold in the 1920s pioneered the normalization of gasoline cars.(Source: Think Link)

Another key turning point for gasoline cars was when Charles Kettering invented the electric ignition in 1915. Drivers no longer had to start their cars manually, one of the reasons gasoline cars were not popular, especially among women.

As more highways were built, there was a demand for greater range that EVs just could not meet, especially when gas stations were cheaper to build than charging stations. Plus, there was no standardized plug for different EV models. Later on, when gasoline cars came equipped with exhaust-control devices that reduced the amount of harmful emissions, people were sold and EVs could no longer compete. EVs made a short resurgence back in the 1970s due to the global oil crisis, but by the 1980s, EVs were almost obsolete.

Back to the Future

Today, it seems as if history is repeating itself. There is a sense of urgency worldwide to tackle the pollution problem – except this time it’s not horse droppings.

In ten years between 2005 and 2015, the number of EVs went from hundreds to a million. Then, in 2016, there was a 60 percent increase in the global number of EVs, and the numbers are projected to grow exponentially. Many countries are backing the switch to electric fuel through tighter regulations on emissions and even completely banning gasoline and/or diesel cars.

Many countries around the world are now banning gasoline and diesel-fueled cars. (Source: Quartz)

Despite the rapid growth, EVs still make up just 1 percent of the global fleet of cars. According to the International Energy Agency (IEA), there need to be 150 million EVs by 2030 and 1 billion by 2050 to contain global warming within 2 degrees Celsius.

For widespread EV adoption, manufacturers, suppliers and policymakers alike can pick up some hints from the past.

SEE ALSO: Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Takeaways

EV manufacturers of the past and present have not found a cure for drivers’ range anxiety. It’s a scenario that likely crosses the mind of any driver considering an EV; running out of juice with no charging station in sight.

A study by MIT shows that range anxiety is irrational because most people drive just 45 miles a day, well under the range of today’s EVs.

The range of today’s EVs. (Source: Vox)

A well-organized charging infrastructure is vital not only for drivers with range anxiety, but also for car companies and those in the charging business. Charging equipment is costly and stakeholders need to know there will be enough demand to make a return on their investment, but drivers are more likely to make the switch after a charging ecosystem matures. The dilemma calls for a collaborative effort among automakers, policymakers and companies like POSCO.

POSCO ICT’s ChargEV

POSCO ICT is an IT and engineering company looking to relieve range anxiety and take a holistic approach to establishing a charging infrastructure in Korea for a greener future. In partnership with various automakers, businesses and the government, POSCO ICT set up more than 300 charging stations in Korea and oversees many more private charging stations within its network.

There are over 300 POSCO ICT ChargEV stations in Korea. (Source: POSCO ICT)

The charging ecosystem is run through an app called ChargEV where drivers can sign up to get real-time information about charging locations, make reservations and even pay for charges. ChargEV is also a platform for customer support and reporting accidents. In addition, partner companies such as shopping centers and hotels that are now equipped with charging stations stand to benefit from the EV network.

EVs are, once again, a major disruptive factor in the automotive market and the future of private transportation. This time around, the stakes are much higher than pungent streets. As more countries and companies commit to reducing harmful emissions, the number of EVs will likely continue to spike. However, if stakeholders can learn a thing or two from the past, it’s that establishing a holistic charging ecosystem will have as much of an impact on EV adoption as the technological advancements of the vehicles themselves.

Cover photo courtesy of SCMP

Since 2014, sales of products combined with Solution Marketing have tripled, and sales of POSCO’s World Premium Products (WPP) have increased by 56 percent.

It Wasn’t Always Smooth Sailing

When the 2008 global financial crisis hit, the global economy as a whole suffered. The steel industry experienced stagnant growth, even in its subsequent recovery. From 2012 to 2016, annual steel sales remained fixed at 35 million tons.

The 2008 Financial Crisis was felt in markets all over the world. (Source: South China Morning Post)

The main culprit for the slow recovery was overproduction, mostly from the heavily-subsidized Chinese steel industry. Between 2000 and 2014, steel production doubled from 800 million to 1.6 billion tons, exceeding the global demand for steel by 100 million tons.

As a result, steel markets around the world saw prices falling, layoffs and steel mill closures.

SEE ALSO: Asian Steel Watch: Megatrends Shaping the Future of the Steel Industry

A Strategy for Success

In order to stay competitive in a stagnant market, POSCO made the decision to focus on Solution Marketing and the sales of its World Premium Products (WPP) such as POSCO GIGA STEEL for cars and PosMAC for solar panels.

Solution Marketing involves hyper-customization for POSCO’s partners to deliver optimal material solutions for their products. Some notable projects this year have been with automakers GM Korea and Ssangyong Motors for the launch of their new models made of POSCO GIGA STEEL. POSCO gave them full support from development and R&D to testing and post-production evaluations, redefining the role of a steel supplier.

GM Korea and POSCO worked together to incorporate POSCO GIGA STEEL into the 2017 All New Chevy Cruze. (Source: GM Korea)

As a result, POSCO’s operating profit margin (individual basis) was 10.8 percent in 2016, making it one of the highest performing steel companies in the world. Its recovery and growth continued into 2017.

SEE ALSO: 6 Reasons Why POSCO GIGA STEEL is Ideal for Automakers

Cultivating the Industry

Following its continued success with Solution Marketing, POSCO is now determined to share its insights and technology with up and coming small and medium-sized enterprises (SMEs). POSCO has completed 32 shared-growth projects through which they work with SMEs to develop ways to cut costs, improve the quality of their work, provide financial assistance and education and training.

One of the most recent projects for shared growth is a collaborative business model called “System Construction” that provides a framework for effective technical cooperation among POSCO’s partners in the construction industry. The model was developed jointly with NI Steel and entails systemizing composite materials such as beams, floor decks, exterior panels and roofing materials, all based on joint R&D from both parties.

Under System Construction, workers from various sectors come together for joint development.

POSCO is continuing its efforts to advance its competitiveness by providing material and technical solutions to its partners, and along the way, fostering the growth of SMEs in various industries to ensure a more stable and robust economy.

Stephen Zoepf is the executive director at the Center for Automotive Research at Stanford University.

To kick off the forum, Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University gave a presentation called “Electric Vehicles: Adapting to a Changing Marketplace” to share his insights on what future markets will look like and implications for automakers, suppliers as well as consumers.  

Here are the key takeaways.

The Future is Going to Look Very Different

According to a report by RethinkX, an independent research group, 6 trillion U.S. passenger miles will be driven in 2030, up 50 percent from 2021. Of those miles, 95 percent will be driven in self-driving, electric and shared vehicles and only 5 percent of those miles will be driven by internal combustion engine (ICE) vehicles.

The report goes on to say that autonomous EVs (A-EV) will make up 60 percent of the U.S vehicle stock, and those vehicles will be part of a shared-mobility service. As more people start to share cars, the overall number of vehicles on U.S. roads will drop from 247 million in 2020 to 44 million in 2030.

SEE ALSO: Going Autonomous: The Transformation of the Transportation Industry

The change is already happening. In 2016, shared-mobility companies such as Uber and Lyft drove 500,000 passengers per day in New York City, which is triple the number of passengers from 2015. Today, more and more automakers like Tesla and GM are also entering the shared-mobility market.

EVs are already becoming prominent in major cities around the world. (Source: Time)

The findings illustrate a future where people drive more miles with fewer cars, which are fueled by electricity, and shared instead of owned. It’s a radical visualization of the future, but one that is driven by economic forces.

By 2021, shared vehicles will be 4 to 10 times cheaper per mile than private vehicles, and American households will save an average of USD 5600 every year by switching to shared EVs from cars fueled by gas, according to RethinkX.

Zoepf shared another report by ARK investment Management which echoes the finding above- in the next ten years, people will drive three times more kilometers using half the number of cars and the number of EVs on the road will increase 10 fold.

What It Means for Car Manufacturers and Suppliers

A shrinking vehicle fleet consisting of mostly EVs can only mean one thing: a major disruption to the current automotive market.  

Right now, the average lifecycle of a car in the U.S. is 11 years. However, the majority of a car’s total mileage is driven in its early years. It’s the same for shared vehicles, but they are driven about 80,000- 90,000 km per year, 10 times the distance of privately-owned cars. What this shows is a compression of the vehicle lifespan in its first 3 to 4 years.

These statistics pose critical concerns for automakers.

Will overall vehicle sales decrease in the coming future? According to Zoepf, that’s the wrong question to ask. Instead, automakers should be asking “will I make money?” Automakers have a couple of choices. They can either adapt early on and manufacture EVs and/or A-EVs at a competitive price, or become a shared-mobility provider. Early movers such as Tesla, GM and Volvo are already shifting their business strategies to fit these models.

GM recently launched Maven, a car-sharing service. (Source: The Verge)

Another question to ask is how these trends will affect vehicle design. With shortened vehicle life-cycles, manufacturers can either design cars to last only 3 to 4 years for quick replacements, or opt for the aviation model where the vehicle will be built to last, but the interior parts, such as seats, will be replaced frequently. Whatever route manufactures choose to take, gaining a competitive edge in vehicle and service quality early on will be key.

What Will This Mean for Vehicle Material Suppliers?

If building cars to last is no longer a primary priority, will car makers downgrade their materials? The short answer is not a chance.

Through a customer survey study Zoepf conducted of 60,000 Zipcar customers, he showed that the number one factor when choosing a car is safety. However, there is no one, ideal model or type of car that is preferred in a shared mobility framework. The purpose of the trip determines the type of vehicle, and the success of a shared mobility service provider will depend on the variety of cars it can provide – all with competitive safety ratings.

POSCO ICT already has ChargEV stations set up across Korea. (Source: POSCO ICT)

The supplier’s role will be to continue providing high-quality materials that can boost the safety and cost competitiveness of future vehicles. Steel suppliers have to keep developing lightweight and high-strength steels like POSCO GIGA STEEL, and research new materials that can boost the competitiveness of EVs such as POSCO’s Hyper NO for motor cores, battery materials and POSCO ICT’s EV charging service and infrastructure.

There remain numerous challenges that lie ahead for a greener and safer future with EVs and A-EVs, and it might take longer than experts predict for lawmakers, corporations and consumers to all agree on an optimal mobility model. However, change is already underway and automakers and suppliers alike need to strategize and adapt early on to take advantage of the upcoming opportunities.

For more information on how advanced automotive steel can benefit automakers looking for lightweight and sustainable steel solutions, take a look at our infographic on POSCO GIGA STEEL or read the full report here. 

Cover photo courtesy of GOV.UK.

Electrical Steel is used to make electric motors for EVs. (Source: Wonderful Engineering)

According to Markets and Markets, the market for electrical steel is projected to expand from USD 27.84 billion in 2016 to USD 38.98 billion by 2021, at a compound annual growth rate (CAGR) of 7 percent. Electrical steels go through various demanding production processes such as annealing, hot and cold rolling and insulation coating. Having the most advanced production technology is paramount, and choosing the best quality electrical steel will determine the overall performance and efficiency of EVs.

What is Electrical Steel?

Electrical steel, also known as silicon steel, is a steel alloy of iron and silicon used to make the cores of motors, transformers and generators.  This softer type of steel can generate various magnetic properties, has high permeability and low amounts of core loss. It has a small hysteresis curve, meaning reduced magnetic hysteresis as well as iron losses, or energy loss.

There are two kinds of structures for electrical steel; grain-oriented and non-oriented.

Grain-oriented electrical steel sheets are most commonly applied to transformers. (Source: Nikomag)

Grain-oriented electrical steel has a uniform, consistent direction of grains in its structure which allows for greater flux density and magnetic saturation. Most commonly, grain-oriented electrical steel is used for transformers which have a predictable and specific magnetic field direction.

Non-oriented electrical steel plates are traditionally welded together to form electrical motors. (Source: LHD Motor)

A major factor that determines the quality of electrical steel is minimal core loss. Due to the constant change in direction of the magnetic field, the energy that is created can easily be lost in the form of heat. Core loss reduction has to be achieved through high-quality electrical steels that have high flux density and lower levels of core losses.

POSCO’s Hyper NO

POSCO is one of a growing number of companies dedicated to doing its part in creating an environmentally sustainable future. That’s why POSCO has been developing its premium non-oriented electrical steel to provide partners with material solutions for EVs.

Take a look at the video below to see how Hyper NO can increase the performance and efficiency of electric vehicles.

POSCO’s Hyper NO is processed using innovative methods such as the self-bonding technology which replaces traditional welding procedures to improve the core’s bonding force. POSCO also managed to reduce core loss by 5 percent compared to traditional types of non-oriented electrical steel and reduce the motor noise by 5dB with its rolling technology that can process the Hyper NO down to an ultra-thin form of 0/15mm. These technologies, along with the Hyper NO’s high magnetic flux density will increase the efficiency of the motor and improve the overall performance vehicles to which it is applied. Hyper NO is highly sought after by automakers looking for premium-grade electrical steel to apply to their EV motors.    

In February 2017, POSCO expanded its production facilities at Pohang Steel Works to increase its annual production capacity of electrical steel from 80,000 tons to 160,000 tons, enough to produce 2.6 million motors for EVs. The strategic move is in line with POSCO’s commitment towards expanding environmentally-friendly businesses as well as its solution marketing efforts to provide customized material solutions to its partners.

Although wire rods are not always in the spotlight, they are widely used in many parts of a car. Steel wire rods are processed into parts for the steering and suspension systems, tire cords and bearings.

However, not all wire rods are the same, and improvements in production technologies can increase automotive performance, safety and cost-effectiveness. POSCO’s world premium steel wire rods provide such solutions to its automotive partners as the global demand for automotive wire rods continues to grow.

Take a look at the video below to see why more and more automakers are choosing POSCO’s wire rods, and where they can be applied.

Wire Rods in the Steering System

The steering system is what allows the wheels of a heavy vehicle to move in various directions and angles, with little force exerted by the driver. If the driver were to steer the road wheel directly, he/she would have to apply 16 times more effort. Fortunately, the movement of the steering wheel passes through the steering system of pivoted joints to the road wheels, which minimizes the burden of labor on the driver. The most common type of steering system is the rack and pinion, pictured below.

Wire rods make up the steering system of a car. (Source: Tires and Parts)

Traditionally, wire rods used for the pinion shaft, rack bar, ball housing, tie rod and tie rod end of the steering system have to be heat treated twice during production. POSCO developed a way to take out all the heat treatment from the production process, allowing manufacturers to cut costs significantly and reduce unwanted emissions.  

Wire Rods for Springs

Automotive springs are part of the suspension system of a vehicle, which determines the level of control the driver will have, as well as the level of comfort. The spring coils compress and elongate along with the movement of the wheels to absorb shock and keep the car body level.

Coil springs are part of the suspension system of a car. (Source: Pakwheels)

As such, the wire rods that make up the suspension system have to have high tensile strength and fatigue resistance. POSCO’s wire rods for automotive springs are made of ultra-clean alloying steel and have a 2.3 GPa tensile strength versus the average 1.9 GPa of traditional wire rods. When applied to the engine valve springs and coil springs for suspensions and stabilizer bars, it enhances the overall performance, safety and lightweight features of the vehicle.       

Wire Rods for Tire Cords

Wire cords undergo an extensive drawing process to be processed into tire cords, also known as tire belts. Tire cords are important because they act as the chassis of the tire, giving it strength and resistance against punctures. It also allows the tire to stay flat for maximum contact with the road.

POSCO’s wire rods during the production process. (Source: World Steel Association)

The quality of tire cords lies in its strength, elongation and stiffness, and require especially clean and high-strength steel to produce. POSCO’s wire rods for tire cords are also highly workable for producing extra-fine wire, meaning car manufacturers get the added benefit of lightweight along with enhanced safety and performance.

Wire Rods for Wheel Bearings

Wheel bearings are under a lot of pressure, literally. It bears the weight of the vehicle so that the wheels can turn as smoothly as possible with little friction. If a car’s wheel bearings don’t function properly or wear out, the tires can rub against the axle, the rubber can burn due to friction, the wheels can malfunction and cause screeching sounds. It is important for the bearings to be highly wear and fatigue resistant to minimize work hardening, crack and deformation. POSCO’s innovative production technology includes numerous tests and quality checks to ensure that wire rods for bearings are in perfect condition.

Wheel bearings bear the weight of the vehicle so tires don’t have to. (Source: MOOG Suspension Parts)

Recently, Research and Markets predicted a compound annual growth rate (CAGR) of 3.50 percent for the global stainless steel wire rod market from 2017 to 2021. This is a telling sign that automakers will continue to seek high-quality wire rods in the midst of growing investment in electric and autonomous vehicles. Now with its second overseas facility up and running, POSCO will continue to meet the global demand for world premium automotive materials and provide innovative solutions to its partners.  

Cover photo courtesy of Steel Intelligence.

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As major automakers around the globe are investing in and developing electric vehicles (EV), there was much anticipation and attention focused on the EV category and its top winners the Tuning X team of Soeyeong University. A major factor in the team’s achievement was the application of POSCO’s magnesium plates for the car body instead of aluminum, something the team had never done before.

The Tuning X Team take home the Excellence Award for the electric vehicle category

The Steel Wire talked to Professor Yoon Jae-Gon, who led 10 members of the Tuning X to victory, to get an in-depth look into the winning electric vehicle.

The Secret to Tuning X’s Success

Like all other major automakers in the world, the biggest obstacle for the Tuning X team was lightweighting their electric vehicle, without compromising the performance of its battery.

Yoon said, “Electric cars are the future of the auto industry, but batteries have a short driving distance, so manufacturers are making batteries bigger and heavier (about 200 ~ 500kg). Despite these efforts, current electric vehicles weigh hundreds of kilograms and cannot go over several hundred kilometers on one charge.”

The motor engine is central to any electric vehicle. For the Tuning X team, they used an AC electric motor which requires a controller, adding more weight to the car. Thus, weight reduction from other sources was absolutely necessary.

How did the team make up for the extra weight?

“We applied magnesium plates for weight reduction to the floor, side, and rear panel of the EV cabin. POSCO’s technical seminars and the production skill training played a vital role. Through this preliminary training, we were able to reduce the number of trials and errors, produce the car in time and end up with the best results possible,” explained Yoon.

POSCO’s magnesium plate applied to the internal, driver side of the vehicle

The team had previously used aluminum, another popular lightweight material, but with the new magnesium plates, they achieved a 5 kilogram weight reduction, from 177 kilograms to 172 kilograms. Yoon added, “Magnesium also showed the same processability as aluminum, and did not require professional processing methods.”

Even as the champions, the team will work on improvements for next year, as defending champions. Their plans include increasing the use of magnesium. Yoon remarked, “If we have a chance, I would like to increase the use of magnesium by using the plates as a base and applying it to the mainframe, knuckle and road wheel in the future.”

The Significance of Magnesium Applications In the Auto Industry

According to Professor Yoon, lightweighting is a trend that is here to stay, especially with the rise of electric vehicles as the next-generation cars. The automotive industry accounts for nearly 25 percent of all greenhouse gas (GHG) emissions in the transportation sector and will face increasing emission reduction policies as countries try to battle climate change.

Lightweighting has numerous benefits in this regard, including increased fuel efficiency, reduced CO2 emissions, improved braking performance, increased acceleration, road protection, increased comfort, increased mileage and environmental sustainability.

Companies started off working to improve internal combustion engines, and the goal was to improve fuel efficiency through downsizing and the use of high-strength steels. Now, they are going further and pairing lightweight materials with electric batteries-the next-generation power source.

An electric vehicle charges at a newly-opened charging station in downtown Michigan (Source: Michigan Live)

“The weight of the vehicle has the most direct effect on fuel consumption. The way to reduce the weight of the vehicle is to reduce the thickness of each part and to modularize the parts, but the most effective way is to lighten the parts through innovative materials. Aluminum, magnesium, and composites are important lightweight materials, and double magnesium alloys and composite materials can be positioned as future lightweight technology materials by improving the reliability of collapse characteristics, achieving economic manufacturing and assembly costs.”

“In addition, the magnesium alloy has been widely used in various fields such as transportation, aerospace, medical care and leisure with its wide marketability. With its light weight, it is possible to install additional safety devices that protect the safety of the driver and will be able to reduce social costs at the same time.” Added Yoon.

“I think that the most important advantage among the various advantages is the environmental contribution. This is because it is possible to reduce gas emissions during the manufacturing process of magnesium alloys and through improved fuel efficiency by lightweighting vehicles.”

Professor Yoon and the Tuning X Team have high expectations for magnesium as a lightweight material of the future. The team will incorporate more magnesium into their upcoming model, and Yoon believes magnesium has the potential to provide effective lightweighting solutions to more and more automakers in the near future.

POSCO will continue to support future automakers as well. Since 2016, POSCO has been supplying magnesium plates and extruded materials free of charge to the winners of the Formula and EV categories. Besides materials, POSCO provides training to make it easier for students to work with and magnesium materials to their cars. POSCO will continue to support student teams to build industry-academia collaborations and provide even more opportunities for students who are the car makers of tomorrow.

Cover photo courtesy of FS Total.

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