– Finding the Hidden POSCO! –

Let’s begin!

① GIGA STEEL — Stronger, Lighter and Better for the Environment

POSCO developed GIGA STEEL, stronger and lighter than competing materials like aluminum and carbon fiber reinforced plastics (CFRP). Withstanding over 100 kg on 1mm2 space, GIGA STEEL builds stronger car bodies, suspension and battery packs making electric vehicles (EVs) safer for the public. Three times stronger and yet 3 times thinner than aluminum, it vastly lightweights car bodies.

With such strength, the GIGA STEEL effectively absorbs and disperses shocks in the event of an accident. It minimizes the shock impact thereby protecting the passengers as well as the batteries. Lighter but sturdier cars were made possible through POSCO’s GIGA STEEL.

GIGA STEEL is also eco-friendly as it helps protect the environment by reducing the cumulative CO2 emissions of cars by about 10%.

② Steel in the Tires! POSCO’s WTP Tire Cord Steel

Though invisible, steel is what makes car tires more durable. POSCO’s WTP (World Top Premium) tire cord steel is hidden in tire chords one of the many essential tire components. POSCO’s WTP refers to a line of products that enhance clients’ competitiveness with its high technology. POSCO’s WTP steel wire for tire cords are highly regarded – it improves stability and while minimizing the tire weight.

And it’s produced by twisting high carbon steel wire rod into a fine wire of 0.4 to 1.15mm in diameter. To withstand various dynamic loads on the vehicle, the tire cord steel undergoes rigorous quality control.

③ For Drive Motors, the World-class Electric Steel Hyper No

A motor is a key component of EVs. It boosts fuel efficiency and the performance of EVs. The function of drive motors in EV is that of an engine in gas vehicles – it allows the driveshaft to rotate via electric current. Highly efficient drive motors must be equipped with electrical steel plates with minimal power loss. POSCO has developed just that – the world-class electric steel plate, Hyper NO. Hyper No is used on high-efficiency motors.

When converting electricity into rotating energy, energy loss is inevitable. POSCO’s Hyper NO effectively minimizes the energy loss, thereby increasing energy efficiency – by over 30% than conventional products. To maximize motor efficiency, POSCO increased the magnetic flux density and successfully minimized energy loss. Thanks to POSCO’s Hyer No, an ultra-thin electric panel, as thin as 0.15mm, with minimum energy loss became a reality.

The ‘self-bonding’ technology POSCO developed recently applies coatings to the surface of electric steel plates, whose function is similar to that of glue. Unlike welding, POSO’s self-bonding technology retains the innate electromagnet characteristics of electric steel plates, which also connects to the improved motor efficiency. The self-bonding reduces energy loss by over 10 % compared to the conventional welding technique.

④ Secondary Battery Materials – from POSCO CHEMICAL!

Unlike disposable primary batteries, secondary batteries can be recharged and reused repeatedly. Lithium-ion battery, an essential component of EVs, is a type of second batteries. Besides EVs, it is a popular choice for many consumer electronics such as portable devices and laptops. It’s also widely used for industrial robots and power tools that require high capacity and power.

A secondary battery consists of cathode materials that determine the average voltage and capacity of a battery, and anode materials which induce current flow by storing then releasing lithium-iron from the cathode, via external circuits.

POSCO CHEMICAL, POSCO Group’s up-and-coming-global enterprise, produces key materials for secondary batteries – cathode and anode materials. The newly established POSCO CHEMICAL is the result of the merger back in April – between POSCO ESM, top-quality cathode producing enterprise, and POSCO CHEMTECH, Korea’s only natural graphite anode producer. As a result of their merge, POSCO CHEMTECH is expected to bring synergies between anode and cathode production. Large-scale early investments in production facilities are currently underway.

⑤ Battery Charge Stations? POSCO ICT Is on It

The biggest concern for the early adopters of EVs is the business of charging the EVs. Making the charge as easy as possible is the key part of the solution.

That’s where POSCO ICT comes in. POSCO ICT established ‘ChargEV,’ a charging infrastructure for EVs. ChargEV provides comprehensive services related to charging EVs, which includes charge stations, control systems, charging membership as well as car-sharing services. Considering accessibility and charging time, POSCO ICT has already established public charging networks at major hubs across Korea – Lotte Mart, E-Mart, Homeplus, and LG Electronics’ BEST SHOP, etc.

⑥ Safe Power Supply, With POSCO ENERGY

Providing power for EVs is also POSCO Group’s utmost priority. Since launching the energy business in 1969, POSCO ENERGY has steadily supplied power to the Seoul Metropolitan area for over 50 years. Through expanded businesses such as the LNG combined-cycle power plant in Incheon, the company went from being Korea’s first private power plant to Korea’s largest.

As it turns out, the world’s top steelmaker POSCO was also a key player in producing core EV materials. The next installation of [Find the Hidden POSCO] will explore POSCO technologies that can be found inside our homes.

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.