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.

Contrary to popular belief, mass reduction does not automatically equal fuel savings, especially when it comes to urban driving. There are other factors that determine the fuel efficiency of a vehicle such as driving cycle, vehicle size and its powertrain. Until recently, there was a  lack of variety in engine types and powertrains, so even though automakers reduced the weight of car frames, they could not apply a complementary engine or powertrain to the lighter parts.

So, have automakers been lightweighting for nothing?

Of course not, in the past decade alone, engines and powertrains have also become extremely efficient through advancements in start-stop-systems and downsizing, and newer options including hybrids, electric batteries and range extenders that now allow automakers to capitalize on their lightweight materials.

Although there are several lightweight materials, below are 5 reasons why AHSS continues to be the lightweight material of choice for automakers:

1. Decision Makers Care About the Environment

Well, not everyone, but many countries around the world have started the process to phase out gasoline and diesel-fueled cars, including India and China, the two largest automotive markets in the world. Governments are taking serious action against climate change and it will reflect in their policies. Automakers are choosing to lightweight their vehicles for lower emission rates with AHSS, because not only is AHSS lightweight, there are no trade-offs with other vital features such as safety and cost-effectiveness.

2. Everyone’s Going Electric

Globally, automakers are investing in electric vehicles (EVs) in line with national and international environmental policies. However, EVs still have a ways to go before they become the norm. EVs will face the same safety requirements as regular cars, but with the added responsibility of protecting the battery and its flammable components during a crash.

In 2016 there were several car accidents involving the Tesla Model S, where leaked battery fluids caused fires. Automakers need to find a solution to make EVs as safe, and eventually, safer than traditional cars. As an innovative automotive material, AHSS was built for safety.

3. Safety is Always First

Safety is and should always be the number one priority for automakers, material providers and policymakers alike. Even with all the hype about autonomous driving and sensors, there is very little chance that policymakers will reverse the stringent safety regulations in place today. People want to feel safe, no matter what type of car they are getting into.  

2016 Smart Fortwo and the Mercedes S Class take part in a crash test (Source: Green Car Reports)

One possible material solution is Complex Phase (CP) steel, a type of POSCO GIGA STEEL for the vehicle’s side panels, bumper rails and door impact bars- the parts that determine the safety ratings of the vehicle. It has superior strength and shock-absorbing qualities, without the added weight of traditional high-strength materials, and that’s why carmakers such as GM Korea, Ssangyong Motors and Renault Samsung Motors all use POSCO GIGA STEEL.

4. Cost is Always Second

This goes for automakers as well as drivers on the consuming end. Drivers want lower costs without compromising safety and performance ratings, and desire fuel efficiency- a major reason why automakers are lightweighting.

Some automakers choose alternative materials such as aluminum and carbon fiber to meet lightweight requirements to find that not only are the materials more costly over steel, factories need an equipment overhaul to work with them. Moreover, there are additional costs related to training employees to work with new materials, whereas all auto manufacturers are familiar with welding and forming steel.  

Take a look at this infographic and see how AHSS stacks up against other lightweight materials in terms of cost and performance.  

5. It’s Not Over Till It’s Over

No two lightweight materials are the same when observed under the life-cycle approach, a comprehensive life cycle assessment of a material’s automotive carbon emissions from production to disposal. Often times, the process of manufacturing lightweight materials and improved powertrains result in more carbon emissions than they are saving.

The life cycle assessment can be used to determine the carbon output of a vehicle. (Source: World Auto Steel)

At the end of the day, steel has the lowest production-related emissions and can be recycled at the end of its lifecycle. Steel remains the most recycled material because it can be reapplied in different forms almost infinitely.

Automakers are increasingly incorporating lightweight materials to their new models. Although competition for the greatest market share of lightweight materials is fierce, AHSS is by far the leading material when it comes to lightweight solutions. According to McKinsey & Company’s Lightweight, Heavy Impact report, the percentage of high-strength materials used for cars will increase to 38 percent by 2030, compared to 15 percent in 2010. Steel continues to evolve according to the changing demands of the auto market, and for now, there is no other multi-solution material that can compete.

Cover photo courtesy of Hyundai.

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Why Should People Care About Autonomous Transportation?

Autonomous transportation is emerging across the world, from personal vehicles to Tesla’s proposed semi trucks that drive in convoy with a lead vehicle handling autonomous follow trucks. Intel is also planning to test a fleet of one hundred autonomous cars and Hyundai’s planning to showcase its self-driving technology at the biggest winter sports event of 2018.

While many have heard of self-driving cars and other road-based vehicles, it may come as a surprise to learn just how far technology has advanced in autonomous transportation. The Swiss bank UBS, suggests that autonomous airplanes could be in place by 2025, a feat that would save airlines $35 billion a year. Clearly, the benefits are drastic and it is becoming essential for companies to invest in making autonomous travel work.

Even further into the future, companies like Next Future Transportation are envisioning pod travel, through which individual vehicles will autonomously transport people from point A to point B.

Next Future Transportation’s autonomous pod (Source: Next Future Transportation)

No matter the type, the economic impact of autonomous transportation technology is unavoidable. Boston Consulting Group expects that the driverless car market will be worth $42 billion by 2025 and $77 billion by 2035, and IHS suggests driverless car ubiquity will hit around 2050.

In terms of what these automated vehicles offer to the public, the Eno Centre for Transportation reports that if 90 percent of American roads were autonomous, accidents would drop from 6 million a year to 1.3 million; deaths would fall from 33,000 to 11,300. Add in better traffic conditions, higher fuel efficiency and extra time gained from not driving, and it’s easy to see why companies are taking notice of this tech sector.

Who is Investing in Autonomous Transportation?
Autonomous transportation entails investment from various industries from materials to technology, and major players are making early moves. Tesla is a good example of a specialty vehicle company determined to see autonomous transportation become a worldwide reality.

Big names in traditional transportation are also jumping aboard. General Motors purchased Cruise Automation, and Ford has invested in an AI startup, Argo AI. Audi has created a subsidiary, the SDS Company, focused on self-driving technology, and BMW has formed an alliance with Intel and Mobileye.

There are also auto suppliers getting into this market, such as Magna, a supplier that is manufacturing vehicles as well as providing the parts to help more traditional companies jump into automated vehicles.

Tech giants like Microsoft are getting involved, too, collaborating with automakers to include their own technology in self-driving vehicles, as well as to research and develop automated transportation technology.

Whether companies are involved in creating the actual vehicles that will be automated, providing security and safety features, pursuing further research, or providing the materials needed to create these vehicles of the future, it is safe to say that this industry is growing rapidly.

Autonomous Transportation and the Steel Industry
A shift toward autonomous transportation is good news for the steel industry. At first glance, it seems steel consumption will decrease as fewer car accidents will lead to less demand for repair parts and more room to use other materials for aesthetic purposes. However, demand for high-strength, premium steels that are highly sought after in traditional cars will continue to increase.

Materials like POSCO GIGA STEEL provide greater strength and safety for automated vehicles, an important consideration when one considers a road full of cars driving themselves. While people may no longer be behind the wheel, they will want to know that their cars, and the cars around them, are made to the highest safety standards. Safety regulations for traditional cars are only getting tougher, and that won’t change with autonomous vehicles.

POSCO’s PBC-EV made with POSCO GIGA STEEL

High-strength steel allows car makers to lightweight their vehicles without compromising safety. POSCO GIGA STEEL’s lightweight properties make it a sustainable solution for automated vehicles that aim to leave a minimal carbon footprint and maximize fuel efficiency. Even better, it is affordable; an important factor considering the overall cost of the technology and hardware that goes into automated vehicles.

The steel industry will also see a boost in the need for accompanying facilities for automated transportation, including manufacturing plants, parking structures, charging stations, smart roads and so on. While automated transportation may be high tech, there will be plenty of opportunities for those in the steel industry to provide material solutions to a rapidly growing market.

Cover photo courtesy of Auto Evolution.

The 2008 Financial Crisis was a blow to the global automotive industry and its suppliers. It took years to recover, but the economy did start showing signs of growth. McKinsey&Company’s 2013 report, The road to 2020 and beyond: What’s driving the global automotive industry, painted a positive picture of the global automotive market with profits projected to reach EUR 79 billion by 2020, up from EUR 54 billion in 2012, with China responsible for 60 percent of profits.

Their 2016 report, Automotive revolution – perspective towards 2030, offered a similar outlook. Overall global car sales will continue to grow, but at about a 2 percent growth rate, down 1.6 percent from the last five years. New market trends such as electric/autonomous vehicles, shared mobility and stricter environmental regulations will disrupt the market with new challenges and opportunities, but what remains constant is that the majority of growth in global automotive sales will be lead by the rising middle class of emerging markets, namely in India and China.

Thousands of vehicles are scrapped in the Chinese government’s efforts to reduce emissions. (Source: The Daily Mail)

Subsequently, China reached record vehicle sales in 2016. However, in April 2017, it recorded the lowest number of sales in the past two years for passenger cars, down 3.7 percent from 2015. This follows a national sales tax rise early in 2017 to 7.5 percent, coupled with a general decrease in demand for cars as consumption is reaching a plateau. Moreover, China’s sales tax will increase again to 10 percent in 2018.

India’s Booming Automotive Industry

Unlike China, India’s automotive market shows little signs of slowing down. India is now the world’s fastest growing economy as their GDP is projected to increase by 7.2 percent from 2017 to 2018. Their middle class is estimated to triple by 2025, reaching 89 million households.

The government of India is looking to the automotive industry to lead India’s economic growth, as outlined in its Automotive Mission Plan for 2016-2026 and “Make in India” initiative. Under such plans, the government will work towards creating an additional 65 million jobs in the automotive market and a 500 percent increase in vehicle exports by 2026.

A full parking lot of Renault cars reflects the massive automotive market in India. (Source: The New York Times)

It’s no surprise that Foreign Direct Investment (FDI) is pouring in. From 2000 to 2016, India’s automotive industry alone attracted USD 15.79 billion in FDI. For investors, India’s growing middle class of consumers is as attractive as their vast and low-cost labor.

POSCO Maharashtra in India

POSCO Maharashtra is one automotive supplier that is echoing the growth of the Indian automotive market. Their 2Q17 unaudited earnings report showed significant growth from just a year before in 2016. The reported revenue was USD 331.7 million, compared to USD 174.7 million in 2016. The company’s operating profit was USD 32.6 million, up from USD 3.5 million in 2016. Finally, their net profit was USD 22.9 million, another significant increase from USD 15.9 million in 2016.

*Earnings figures were converted from Korean won to U.S. dollars using August 22, 2017, exchange rates.

The POSCO Maharashtra Plant in India

In May of this year, POSCO Maharashtra signed a MoU with Essar Steel to supply 1.1 million tons of flat steel products during the 2017 fiscal year. This is the second year of partnership between the two companies, but the volume of steel POSCO Maharashtra will supply is 30 percent higher than in 2016.

The growing business reflects the work philosophy of POSCO Maharashtra employees: “If [we] supply quality material, they’ll come back again and again. So that’s what we’re doing right now. Although our products might be priced a bit higher in the Indian market, we are supplying quality material and our customers continue to be loyal because they understand that value.”- Chetan Waghchoure, sales representative for POSCO Maharashtra. Read the full interview here.

POSCO Maharashtra’s Chetan Waghchoure during an interview with The Steel Wire

POSCO Maharashtra is taking full advantage of the thriving automotive industry in India and continues to expand its business by reducing production and inventory costs, increasing performance and efficiency and planning to incorporate AI technology into their future production processes.

Market indicators point to India to drive the profitability of the automotive industry. India’s growing consumption of vehicles, open business environment and vast labor force will continue to attract foreign investment and new businesses. The best part is that India is not even close to being fully developed, meaning brighter prospects for future growth and good news for manufacturers and suppliers.

Read how these megatrends and the expansion of the four largest steel-consuming industries have driven the growth of the steel industry from the last fifty years and will continue to play a crucial role.

Megatrends and their impact on the steel industry

Future Cities and Changes in Steel Materials

Urbanization is a key driver in the development of the global construction industry and will further accelerate in the future with rapid industrialization in developing countries and the shift to a knowledge economy in advanced countries.

Within the overall shift toward urbanization, many countries are actively crafting policies to develop their cities as globally competitive megacities. There is an increasing number of megacities with over 10 million inhabitants as the competition paradigm shifts from competition among countries to competition among cities.

Also, with a growing sense of urgency in improving the environment in terms of ozone depletion, climate change and energy and resource exhaustion, eco-friendly, green cities are emerging as a new trend.

Lastly, smart cities, characterized by digital transformation and energy revolution, will rapidly expand in the future drawing on the Fourth Industrial Revolution.

Following the ongoing and emerging trends of urbanization and future cities, new advanced steel materials are required to accompany emerging trends and accelerate the development of megatall, eco-friendly and smart products. Conventional steel materials for construction, such as steel bar and section, will improve in functionality with higher strength, thermal conductivity and better sound isolation. They will also be developed as composite materials and new materials such as carbon nanotubes and shape memory alloys will be widely deployed in construction processes. However, as construction costs (labor costs and the use of high-strength steel materials, for example), increase, steel content per unit of construction investment is expected to decline.

A New Mobility Paradigm

Led by high-income earners, lower car prices and improved road infrastructure, the key trend for the automotive industry is motorization. Today, automobiles are no longer just a means of transportation but becoming a major arena for IT competition with the rise of electric vehicles, robotic vehicles and new mobility services.

As a response to global warming, electric vehicles and energy-efficient self-driving cars are becoming increasingly widespread along with the rise of new innovative mobility services, such as robo-taxis and self-driving mini-buses.

In the case of EVs, less auto parts will be required as metal parts such as powertrain components – the engine, vehicle intake and exhaust system, and transmission – will be replaced by batteries, motors, and electronic parts. As cars are made lighter to improve driving range, alternative materials such as aluminum and CFRP are being used in some luxury lineups.

In order to retain its competitiveness and also meet increasingly strict environmental regulations, the steel industry is developing lighter and stronger steel materials such as advanced high-strength steel (AHSS) to replace traditional steel products. Steel, a strong and economically competitive material, remains an attractive choice for both EVs and self-driving cars.

Recovery of the Shipbuilding Industry

Technological advancement as a result of the Fourth Industrial Revolution and changing environmental regulations will bring considerable changes to the shipbuilding industry.

The shipbuilding industry, which boomed in the 2000’s, experienced a downturn after the 2008-09 financial crisis. Although the oversupply will linger until 2025, the shipbuilding market will then turn to an upswing with increasing growing global trade and rising demand for ship replacement.

With the development of ultra-large container ships, LNG-fueled ships, electric ships, CO₂ carriers, polar ships, and environmentally–friendly equipment, high-strength steel for ultra-large and lighter ships and high-strength low-alloy steel for safe and affordable LNG and CO₂ storage tanks are required.

As vessels become larger and lighter, the steel intensity of ship’s tonnage will fall. Steel intensity is expected to decline due to larger and lighter vessels.

Global Climate Action and Energy Transition

As a response to global warming, renewable energy is increasingly in demand. In fact, it is no longer being referred to as “alternative” energy but “mainstream”. The International Energy Agency (IEA) has predicted that the share of renewables within global power generation is expected to rise from 23 percent in 2014 to 37 percent by 2040.

The renewable energy sector is also adopting various types of steel products. The tube tower, which accounts for 65% of the weight of a wind turbine, is made mainly of steel, while thin stainless steel sheets and frames are required for solar panels. This wide application of steel products offers additional business opportunities to steel companies.

Meanwhile, the share of fossil fuels within primary energy consumption will fall from 81 percent to 74 percent over this span. However, the decline will be gradual due to population and economic growth in emerging countries and fossil fuels will continue to play a dominant role in the energy sector in terms of quantity of consumption.

Steel companies must target new markets by developing innovative steel products for the microgrids and energy storage systems which will grow alongside renewable energy.

The Steel Industry Over the Next Two Decades

Over the next two decades, the steel industry will face the following four challenges: slowing steel demand due to decreased steel intensity across major steel-consuming industries; a need for more advanced steel products; upgrading to eco-friendly and smart steelmaking processes; and changes in manufacturing based on the Fourth Industrial Revolution.

Accordingly, it is imperative that the steel industry boost its capabilities for continues product and process innovation and build a sound steel ecosystem through partnerships with steel-consuming industries.

To this end, POSCO is not only investing in the development of an eco-friendly rolling process but also in sustainable development including energy conservation and recycling technologies. In addition to factory automation based on IoT, big data and AI, POSCO is working to increase the application of smart technology internally as well as externally with its partners and affiliates.

It is an exciting time for the steel industry as it continues to transform along with the ongoing and emerging megatrends.

Download the full version of POSRI’s Asian Steel Watch journal for more at POSRI’s official website.

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Take a look at three of the ways transportation is restructuring itself for faster, more sustainable travel. Some are closer to realization than others, but all of them are changing the way we think about movement. When realized, all of these ideas will have an impact far beyond what we can see now.

The Hyperloop – Fast & Frictionless

An Idea by Elon Musk

In 2013, Elon Musk came up with the idea for the Hyperloop as he grew frustrated with the high-speed rail being developed in California at that time. He called it “both one of the most expensive per mile and one of the slowest in the world.” Musk said, “It would be great to have an alternative to flying or driving, but obviously only if it is actually better than flying or driving.”

He imagined capsules, zooming by at speeds faster than any train or plane, that would allow him to get to San Francisco from LA in 35 minutes. The basic concept was that the capsules would float through partially evacuated steel tubes propelled by fans and electromagnets. Because there would be less friction from air and rails, there could be significant increases in speed and durability, while decreasing reliance on fuel at the same time.

Workers install Hyperloop’s stator blocks at our test and development site in North Las Vegas. (Photo courtesy of Hyperloop One)

Because Musk was so involved transforming the space industry with SpaceX, the auto industry with Tesla, and the energy industry with SolarCity, he did not seem to have much time for Hyperloop. So, he developed a 58-page outline of his ideas and left it to others to develop. And they have.

Hyperloop One Unveils Testing Site

To fulfill this improbable dream, a handful of startups have stepped in – one of them being California-based Hyperloop Technologies. They have been building a test site, called DevLoop, 30 minutes outside of Las Vegas in the Nevada desert that was unveiled last week to the public. According to their press release, DevLoop is a 500-meter full-scale Hyperloop test structure weighing over one million kilograms. The Hyperloop One tube measures 3.3 meters in diameter and they are expected to perform their first full test sometime in the first half of 2017.

Hyperloop unveiled its first test site, the DevLoop on March 7. Later this year, they will run their first test of the Hyperloop. (Photo courtesy of Hyperloop One)

In November, Hyperloop Tech signed an agreement with the Dubai Roads and Transport Authority to evaluate building a Hyperloop between Dubai and Abu Dhabi. When completed, a commute that once took several hours will take just 12 minutes.

All parties involved realize the costs are going to be high. Creating a new form of transportation infrastructure is not simple and building large steel semi-vacuum tubes over ground (or under) is technologically difficult requiring trained engineers and highly skilled workers. To offset this, Hyperloop Tech is focusing some of its energy in attracting industrial freight clients.

The Future of Freight

One of Hyperloop Tech’s Transportation Economists, Dapeng Zhang, recently presented on transformational freight explaining that their “vision at Hyperloop One is to connect cities into mega-regions, and turn metro areas into metro stops. This will inevitably improve the efficiency of freight supply chains. By connecting two distant metros, Hyperloop One creates a geographical cluster which could help reduce inventory costs, promote even more just-in-time strategies, and expand same-day delivery service areas.”

A Hyperloop steel tube awaits entry into the tube processing building, where they are painted and prepped for use. (Photo courtesy of Hyperloop One)

Whether or not this is completely feasible is still up for debate, but it is exciting to see the strides being made in this type of supersonic transportation technology. Other developments such as electric cars, autonomous vehicles, and SkyTran (below) will help us move short distances, but ideas like the Hyperloop are needed to connect the larger metropolitan areas.

SkyTran – Personal Rapid Transit

Apart from the Hyperloop and autonomous driving technology, other personal mobility developments are being made. One of those is SkyTran, a company working to develop a personal rapid transit system that carries people in autonomous pods. Located near Mountain View, California, SkyTran has focused its efforts on relieving congestion in cities by creating a system that rides on an elevated monorail. It is both quick and efficient, and unlike the Hyperloop, it is nearing completion with plans to open in Israel, Nigeria, and France.

This concept image shows a drop-off point for one of SkyTran’s capsules. (Photo courtesy of SkyTran)

Using what is called maglev technology (magnetic levitation), the SkyTran uses electromagnets (similar in concept to the Hyperloop) to propel itself forward (up to 155 mph) while using little to no electricity. SkyTran says that when the pod reaches 10 mph, it can continue to glide and accelerate without any extra power. SkyTran’s CEO says the pods can on the same amount of electricity as two hair dryers.

SkyTran capsules are elevated above the city streets avoiding traffic and giving them the freedom to move at high speeds. (Photo courtesy of SkyTran)

In addition to being highly efficient to operate, SkyTran benefits in its low upfront costs. Unlike the Hyperloop, which requires rather large infrastructure and maintenance costs to ensure proper functionality of the pipe’s vacuum and propulsion system, SkyTran is projected to be a much more economic option. Because the system is set up above the streets, its footprint is small – requiring only an 18-inch steel pole to hold the steel and aluminum capsules.

The company estimates that it will only cost about USD 13 million per mile to build, compared to a subway system that can cost around USD 160 million for the same distance. Because of the low upfront costs, SkyTran believes that malls, hotels, and other private businesses will want to build their own offshoot lines – not only for their customers but because it will be profitable.

POSCO’s Advanced Auto Steel in Future Cars

Autonomous, connected, electric. These are the common buzzwords that come to mind when we think about future trends in personal transportation. At CES earlier this year, seemingly everyone had their own solution to made driving cars more connected and safer, and with less human involvement.

Nissan and BMW unveiled plans to use Microsoft’s personal assistant technology, Cortana, with their cars. Honda became the first major manufacturer to develop an electric concept car specifically designed for ride-sharing. And as for self-driving cars – Nissan announced it would bring autonomous driving support to its Leaf electric car, Hyundai introduced one that would be affordable enough for the masses, and Audi announced a partnership with Nvidia to bring self-driving cars to market by 2020.

At the 2016 North American International Auto Show (NAIAS), POSCO showcased its advanced automotive steel products that are both strong and lightweight, making them uniquely suited for the electric cars of the future.

The weight of POSCO’s advanced auto steel is about 26.4 percent lighter compared to that used in most mid-sized vehicles. But despite being lighter, it received the highest level possible ratings from Europe and North America’s automobile collision evaluation Institute, Euro NCAP and IIHS.

In addition, the Life Cycle Assessment (LCA), which measures the amount of CO2 discharged throughout the entire life cycle from material production to recycling, showed that emissions from the internal combustion engine body were 50 percent lower. Electric car emissions were also decreased by about 9 percent.

POSCO’s advanced auto steel is uniquely developed to be lighter and stronger for the cars of the future

The displayed products included the new PosM Steel and hot press forming steel (HPF). PosM Steel is a “dream material” for car manufacturers because it is five times stronger than other steel in terms of machinability while also having an impact absorption of up to 100 kg per mm². While many steelmakers have been developing PosM Steel type steel, it has never been produced on a commercial scale before. In addition, POSCO’s HPF steel is stronger than many other steel alloys making it a good solution for manufacturers looking to improve car safety.

POSCO currently supplies advanced auto steel sheets to car and component manufacturers, including Toyota, Volkswagen, and GM. POSCO has 10 automobile production plants and 24 machining centers around the globe. In addition to providing its World Premium Products, POSCO also provides Solution Marketing services that offer customized technologies developed in-house (such as welding and molding) that are customized to fit a customer’s unique needs depending on the product and manufacturing process.

Innovations in the transportation industry require big ideas, big investments, and new technological advancements. Right now, all of these seem to be coming together for what is expected to be some big changes. If the investors at Hyperloop and SkyTran have their way, pretty soon we will be able to travel across Europe on a Hyperloop, transfer to a SkyTran, and arrive in our hotel in less than an hour.

*Cover photo courtesy of Hyperloop One.

Advancements in electric cars, autonomous driving, car connectivity, and AI were on full display. Nissan and BMW unveiled plans to use Microsoft’s personal assistant technology, Cortana, with their cars. Honda became the first major manufacturer to develop an electric concept car specifically designed for ride-sharing. And as for self-driving cars – Nissan announced it would bring autonomous driving support to its Leaf electric car, Hyundai introduced one that would be affordable enough for the masses, and Audi announced a partnership with Nvidia to bring self-driving cars to market by 2020.

With all of the focus on electric cars and autonomous driving, it is easy to forget the basic building blocks that are needed to make these cars a reality. As Toyota Research Institute CEO Gill Pratt noted at CES, “Historically humans have zero tolerance of death by machine,” and for further adoption by the public, safety must be reinforced in autonomous vehicles. Increased safety in cars often goes hand-in-hand with heavier materials that can withstand more pressure. However, the push for more fuel efficient electric cars is pushing the industry to build with more lightweight components.

Car manufacturers are working to find the right balance between strength, weight, and price. The EPA has estimated that reducing a vehicle’s weight by 45kg (100lbs) will improve fuel efficiency by 1%, and while more lightweight materials do exist in aluminum and magnesium, they are often too cost-prohibitive for general use.

POSCO Body Concept Electric Vehicle

POSCO’s PBC-EV is both safe and lightweight

On this front, POSCO has been working to develop solutions for car manufacturers. The PBC-EV, or POSCO Body Concept Electric Vehicle, is one product of that research as POSCO sought to create a lighter car with the same strength and safety that is expected in today’s modern car market. POSCO focused on two main points when developing this lightweight car body. The first was the application of a combination of POSCO’s most advanced steels including TRIP, PosMCT950E, and PosMCT980B. Secondly, POSCO optimized existing construction methods and worked to introduce new techniques in order to both lighten and strengthen the body of the automobile. With its PBC-EV, POSCO was able to reduce weight by 26% while still maintaining the highest levels of body strength.

Magnesium technology

POSCO materials were used in the design of Renault’s EOLAB concept car

Many in the auto industry are setting their sights on magnesium as the future of car manufacturing. Magnesium can be easily molded and it is both lightweight and strong. Due to its high price, car makers have not fully embraced the move to magnesium yet, but POSCO is already preparing for this probability. Last month, POSCO’s World Premium Materials (WPM) – Magnesium Business Division organized a seminar with industry experts and automotive engineering students to discuss the future of magnesium in car manufacturing. Experts in magnesium, molding, bonding, and surface treatment were invited to speak about the application of magnesium technology in automobiles and students gave presentations on their own experience developing race cars.

Even though cars have been around since the late 19^th century, new ideas continue to force the industry to adapt and change. And whether it is optimizing existing manufacturing processes or working to utilize technologies for the future, POSCO remains committed to finding innovations in the auto industry.

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In addition to working as a sales engineer in Indonesia and Singapore for two years starting from 1993, Lee was also in charge of establishing technology strategies for automotive steel sheets as well as producing Tailor Welded Blanks (TWB) at the Gwangyang steel mill. Already equipped with knowledge of cold rolled steel products and automotive steel plates, Lee was able to build two manufacturing centers in Mexico, POSCO-MPPC plant 1 and POSCO-MPPC plant 2. He made big contributions in stabilizing the plants during their early stages while working as the Director of Production for CGL (Continuous Galvanizing Line) 1 and 2 in Mexico, which was POSCO’s very first overseas construction.

Lee, who has successfully completed the construction of Thailand CGL last May, said, “I would like to compete in the Southeast Asian market with our unique POSCO style.” POSCO Today had a chance to speak with Lee directly and hear about his goal of creating the best CGL in Southeast Asia, specifically through taking full advantage of POSCO employees’ work capabilities.

What is the background behind the construction of Thailand CGL and what are some of its expected outcomes in the future?

Thailand has not only positioned itself as the base for the automotive industry in Southeast Asia, but it is also known as the center of the manufacturing for products like home appliances. Speaking of the automotive industry, Japanese automobile companies, which entered the Thai market during the 1960s, currently occupy over 90% of the total automobile production, and these companies all share a demand to receive material supplies from local suppliers. In order to meet such needs and to expand the market further, Japanese steel companies, such as NSSMC and JFE, have entered the Thai market and have been operating CGLs since 2013.

POSCO, which provides around 150,000~200,000 tons of galvanized steel sheets to Thailand every year, has also entered the Thai market in order to provide stable supplies for its existing clients and to further expand the market. This will be accomplished through fulfilling localization needs for the material supply and demand of the Southeast Asian clients, and responding proactively to the recently heightening commerce regulations.

Moreover, with the launch of the AEC (ASEAN Economic Community) last December, it is expected that POSCO will be able to provide an extended supply of its high-quality plating materials to even intra-regional countries such as Vietnam, Indonesia and Malaysia.

What differentiates POSCO’s technologies and products from those of Japanese and other international companies?

Although NSSMC and JFE have been operating CGLs since 2013, they are still facing some quality issues. This is not because Japanese steel companies fall behind in terms of their technology, but because of their lack of global experience and inadequate ability in operating overseas production corporations.

POSCO, however, is currently implementing systematic technology support at a favorable time, based on the CGL operation know-hows learned from previous CGL locations, such as Mexico, Indonesia and China. POSCO is also working to standardize operation methods in more detail for employees. Although POSCO may not have been able to get a head start in terms of operating CGLs, the future for POSCO is looking bright from facility and quality aspects.

Tell us about POSCO’s unique marketing strategy in the Southeast Asian market, including Thailand.

Thailand CGL was established in order to stably produce automotive steel sheets and to provide highly competent materials to regional clients. Prior to providing automotive steel sheets, however, a quality certification from each automobile company is required, which usually takes about 1.5~2 years.

Therefore, until quality certification is acquired, POSCO plans on creating profit and expanding its contract base through differentiating the quality of GI products for home appliances and painting, areas in which our competitors are having a hard time producing for.

There is also a number of small local automobile companies in Thailand. These companies do not have an established material buying channel, and they cannot even attempt to establish a relationship with a large steel company like POSCO due to their outdated technology. POSCO, therefore, plans to provide manufacturing technologies, such as mold technology, and automotive steel sheet buying channels for these small local companies through Thailand CGL, which will also allow POSCO to expand its contract base based on a solution marketing system.

What is your plan in terms of creating a synergy with local employees?

No one should be treated differently, no matter where you are from. By all means, standards for employee management should not differ by one’s country or region of origin.

If you are respectful and considerate of others – local employees, that is – synergy among the employees will be maximized regardless of their nationality or region of origin. As long as every employee works with a strong sense of vocation for working at the best steelmaking company, the outcome is going to be successful. For better performance, problems faced among people should be resolved through humane respect and care, while their working styles should resemble that of POSCO’s.

Lastly, what is the ultimate goal of Thailand CGL? And, do you have any final words?

Thailand CGL must compete in the same industry, serve the same clients and compete with the same galvanized steel sheet products as the Japanese steel companies, which are known as the world’s best within the industry.

Every employee at Thailand CGL will be devoted to securing a comparative advantage in advance in all aspects, including quality, facility and corporation operation, and be able to write a POSCO success story in Thailand.

POSCO continues to strive to maintain its role as a leader in the steel industry, integrating into the Southeast Asian market seamlessly through producing premium products for the automotive industry while utilizing their global expertise. Lee is determined to make Thailand CGL a success, and he believes that with the help of POSCO’s dedicated employees and the company’s competitive edge over other major steel producers, this goal can soon become a reality.

POSCO Holds Completion Ceremony for Thailand CGL, Southeast Asia’s First Automotive Steel Sheet Plant

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Cross-Industry Collaboration for Unsurpassed Innovation
At CES earlier this month in Las Vegas, the world saw how traditional and non-traditional technology industries partnered and collaborated on ways to do business and address global issues, from making roads safer to preventing illnesses. These cross-industry collaborations are becoming increasingly common and can be structured to meet multiple objectives while spanning multiple industries.
The trend of cross-market relationships is also emerging in the steel and automotive industries, specifically in the areas of lightweight vehicles, the latest innovations in steel applications and eco-design for automotive materials. Recognizing this, POSCO is making multiple efforts to step out of the oft-confining boundaries of industry and expand its services to other markets.
Among these efforts are collaborations within POSCO Group. POSCO TMC, for example, is partnering with the Group as a specialist of motor cores for electric automobiles while POSCO ChemTech is affiliated with a company specializing in battery materials. Such collaborations are exactly in line with POSCO’s policy of building a sturdy total solution-based revenue mode.
“POSCO is no longer simply a steel provider. It is a ‘total solution partner’ that works from A to Z for the complete production of automobiles,” noted POSCO executive director Wonki Kim at POSCO’s press conference at the Cobo Center in Detroit. “It will play the role of being the best assistant in reaching eco-friendly, lightweight vehicles while providing values that take a great step forward through utilization techniques such as figuration and welding based on high-quality materials as well as commercial support.”

Paving the Road to Sustainability with Steel Sheets

POSCO’s technology on display at NAIAS demonstrates the steelmaker’s unique raw materials for future eco-friendly automobiles, such as hot press forming (HPF) and PosM Steel.
The latter of the two is considered a “dream material,” as its intensity is five times stronger than other steel in terms of machinability, while it can withstand up to 100 kilograms per square millimeter. Therefore, it proves excellent in impact absorption and increased safety—one major focus regarding future automobiles.

About 30 high-strength and lightweight steel products, including POSCO’s original products, are being exhibited at this year’s NAIAS. POSCO plans to attract the attention of global automobile companies by presenting its auto body made with the world’s best car sheets.

Likewise, POSCO aims to address global automakers’ purchasing needs at NAIAS by revealing the most ideal steel plates for automobiles. The weight of this steel itself is about 26.4 percent lighter compared to mid-sized vehicles and has been verified in terms of safety. It also gives off fewer emissions of carbon dioxide compared to electric vehicles made with one-third the gravity of aluminum in comparison to iron.

POSCO “Driving” the Auto Industry Since 2010
Despite POSCO’s recent efforts to help construct the automobiles of the future, the company has been pursuing automotive endeavors for a while now. In fact, POSCO has been working toward the successful development of a sustainable electric car body ever since 2010. In just two years, POSCO launched PBC-EV, a safe, lightweight car body developed especially for electric vehicles. The weight of the PBC-EV was reduced by 26 percent compared to cars of the same size with internal combustion engines.
In addition, the car body possessed high-strength properties and received a score of five stars from EURONCAP and achieved a “Good” safety rating from IIHS. The development of PBC-EV was a result of applying the world-class Ultra High Strength Steel (UHSS) to over 40 percent of the material and optimizing advanced construction methods such as HPF (Hot Press Forming).
Other milestones were reached in 2012 when POSCO signed a joint development agreement with Renault-Samsung, and again in 2014 when the company joined in on the EOLAB production project with the French automaker. The revolutionary concept car boasts a super-efficient fuel economy of 100 kilometers per liter, thanks to its extraordinary lightness—a key to the development of future cars—enabled by the use of its state-of-the-art, high-strength steel and special magnesium panels developed in conjunction with POSCO.
Then, last year, the steelmaker held the POSCO Automobile Solution Seminar, which was attended by over 250 representatives from automotive part manufacturers, universities, R&D institutions and finished carmakers including GM Korea, Ssangyong Motors, and Renault Samsung Motors. The seminar focused on promoting POSCO’s latest technologies for automobile solutions and featured two stripped down vehicles that showcased the latest automotive design trends and materials.
Now, in 2016, POSCO continues to be at the forefront of the development of the auto industry of the future. Although it’s impossible to know for sure what the future of the automobile market will look like, one thing is for certain, according to POSCO’s managing director, Wonki Kim: “Steel is still the ‘Best Solution’ and it will continue to be in the future.”

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POSCO-CWPC has been selected as an excellent supplier for the third consecutive year by DPCA, the largest finished carmaker in the Central China region. (From left) DPCA’s technical director, Tan Min Qiang and POSCO-CWPC’s President, Young-ki Seo

Dongfeng Peugeot Citroen Automobile (DPCA), the largest finished carmaker in the Central China region, selects the recipient of its Excellent Supplier Award each December after evaluating purchase amount, quality, delivery and technical cooperation. This year, POSCO-CWPC was the only recipient among the company’s steel product suppliers.

This achievement is the result of POSCO-CWPCeliverya region,warded tthe strategic partnership between both parties and to improve its solution marketing by actively utilizing the sales channel of POSCO’s automotive flats.

POSCO-CWPC has completed quality certification on about 70 percent of the galvanized steel products produced at the Guangdong Pohang Automotive Steel Corporation in the two years since its quality certification process began. In doing so, POSCO-CWPC is able to successfully supply high quality materials that meet DPCA0 of POSCO’s au, solidifying its position as a major supplier to automobile manufacturer.

POSCO-CWPC held a technical exhibition in October to expand its technical marketing. It also improved its technical response to DPCA through the operation of its Technical Service Center based in Wuhan, China, and is actively working on EVI activities to apply POSCOponse to DPCA throughthe G25 and G95 DPCA automotive models.

POSCO-CWPC plans to strengthen the cooperation between both parties by constructing a JIT supply system and to expand the sales infrastructure of WP products through the extension of solution marketing with DPCA.

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