Among the three pillars under which POSCO perfects its mega trends – Neo Mobility, Mega City, and Eco Energy – ‘Neo Mobility’ features the go-to future modes of transportation, electric vehicles. Neo Mobility has been the guidepost for the future as POSCO resolutely focused its energy to make headway with EV products like the battery, chassis, traction motor, as well as hydrogen fuel cell in all of which steel plays crucial roles.

In regards to such roles steel play, the worldsteel’s analysis helps understanding how steel contributes to powering the EVs, the future. POSCO Newsroom reports.

As the next wave of electric vehicles (EVs) begins to hit the roads, steel is set to play a vital role in the chassis, engines and charging stations that will power the cars of the future.

The world is in the middle of an evolution of its mobility systems. Electric vehicles are more aesthetic, high-performing and efficient than ever. And thanks to government policies supporting greener transport, there is set to be a dramatic increase in the number of EVs on our roads over the next five years. In Europe, the number of EVs rocketed to more than a million in 2018, while China’s car market continues to lead the way.

Electrical steel is vital for its use in the stators and rotors in the motor of an electric vehicle.

In recent years, steel has increasingly been favoured over aluminium as the metal of choice in EV construction, largely because of its lower cost and superior strength. Materials like Advanced High Strength Steels are playing a vital role in lowering vehicle weight while still offering high passenger protection.

EV manufacturer Tesla, for example, shifted to steel for its first mass market offering, the Model 3. Other manufacturers who have opted for steel in their vehicles include Nissan, for its Leaf model – the best-selling all-electric car worldwide – and Volkswagen for the e-Golf.

l Magnetic appeal

The engines that power EV are also reliant on the unique properties of steel. Electrical steel, which is manufactured to contain specific magnetic properties, is a key component in transformers and generators. This material is also vital for its use in the stators and rotors in the motor of an electric vehicle. Here it has a critical influence on the efficiency of the motor, minimising core energy losses and boosting the vehicle’s range.

Motors used in industrial machinery typically operate at between 5,000-8,000RPM, but the electric motors in modern vehicles can reach speeds four times higher than this. This generates significant heat, which can increase core losses and negatively impact vehicle performance. At this many revolutions, the motor components undergo extreme mechanical stress and here electrical steel can be relied upon for its high durability.

In 2015, steel manufacturer thyssenkrupp developed a new electrical steel that raised the bar for EV performance. This has resulted in core losses nearly 30 percent lower when compared with motors made from conventional steel. It also displays extreme strength that allows for more compact high-speed motors, lowering weight and reducing the space they take up.

l Leading the charge

But while EVs are becoming increasingly efficient, popular and affordable, one key stumbling block has the potential to disrupt this growth – a comprehensive charging network. And as it stands, the infrastructure is not where it needs to be. In fact, according to a recent study by Emu Analytics, a London-based data science and software company, there is a projected 83% shortfall in the required number of charging points for electric vehicles by 2020. This could lead to enormous congestion at charging stations.

▲ EV engines use electrical steel in their construction for its unique magnetic properties (Image: iStock)

Tasked with the responsibility of lightening this load, a number of electric vehicle charging options are being explored, and steel is often a key component. Chargers such as the CHAdeMO charging system are leading the way, with many EV manufacturers – including Nissan, Mitsubishi and Tesla – investing in this model.

Manufacturers of CHAdeMO stations use steel for the chargers’ housing because of its strength and durability in all weather conditions, even in salty climates like coastal cities. As the number of charging stations across the world expand, including to more rural and remote areas, a strong steel shell with low to no maintenance requirements will play a critical role in service reliability.

The future has never looked greener for EVs, but failing to deploy charging points could be a major barrier to ownership. According to Richard Vilton, CEO of Emu Analytics, the key is to invest in expanding this network early on. “Companies that do this are not only poised to become global leaders in electric vehicles, but also have the opportunity to play an instrumental role in shaping a sustainable future,” he concludes.

Whether its improving their efficiency, lightening their load without compromising on safety, or enabling the rollout of vital charging infrastructure, steel will play a key role in realising the electric vehicle rEVolution.

The original content published on the worldsteel’s ‘Our Stories’ section is available at: https://stories.worldsteel.org/automotive/electric-charging-vehicles-future/

1. #Winning – competitiveness and sustainability

POSCO was recently named the world’s most competitive steelmaker for the eighth consecutive year by World Steel Dynamics (WSD). POSCO again took home the gold with the highest scores in five categories including innovative technology, cost reduction, skill level of labor, restructuring and investment environment.

POSCO is the world’s most competitive steelmaker.

Not only did POSCO come out on top for competitiveness, the company was ranked 35th among the “Global 100 Most Sustainable Corporations in the World in 2017,” by Toronto-based magazine and research firm Corporate Knights. The list was announced in early 2017 at the World Economic Forum in Davos, Switzerland. This is the third consecutive year POSCO made the list with outstanding scores in safety, environment and the salary levels of employees.

2. Joining the trillion club

POSCO entered the trillion club twice in 2017 as it recorded USD 1.283 billion (KRW 1.365 trillion) of operating profits in the first quarter, and USD 1.0581 billion (KRW 1.1257 trillion) in the third quarter based on its consolidated operating profit. Even in the midst of global oversupply and governments opting for protectionist policies, POSCO’s profits were unscathed. Much of the credit is owed to the company’s steel and non-steel affiliates overseas with strong sales performances. The consolidated debt-to-equity ratio was the lowest since 2010 and the non-consolidated debt-to-equity ratio was at its lowest ever.

POSCO recorded an operating profit over KRW 1 trillion in the first and third quarter of 2017.

To add, international credit rating agency S&P upgraded POSCO’s BBB-plus credit rating outlook to “stable” last February, and Moody’s also upgraded POSCO’s long-term corporate credit rating outlook to “positive” on October 26.

3. Everything’s bigger in…POSCO

Last June, after 102 days of repair, Pohang Blast Furnace No.3 became the world’s fifth-largest blast furnace. Its internal volume expanded from 4350㎥ to 5600㎥, allowing the super-sized blast furnace to put out 15,000 tons of molten metal daily. POSCO currently operates five super-sized blast furnaces, or blast furnaces sized 5500㎥ or larger.

Pohang Blast Furnace No. 3 under construction.

POSCO further upgraded Pohang Blast Furnace No.3 by adding in AI capabilities. It is now equipped with smart technology that can control the internal state of the blast furnace automatically, and smart sensors can now predict accidents before they happen, extending the lifespan of the furnace. Furthermore, POSCO plans to collect big data from the blast furnace and use it to develop fully smart blast furnaces in the future.

4. The smarter the better

Since his taking up the CEO position in 2014, POSCO CEO Ohjoon Kwon has repeatedly expressed his vision for securing future competitiveness through smart solutions. The company even started a smartization training course for employees and held the Smart POSCO Forum 2017 last July to share its insights and progress with clients and affiliates.

POSCO is gaining a competitive edge through smart solutions. (Source: Global Trade Magazine)

Moreover, POSCO also supported a smart talent training project customized for SMEs. The program included job training for AI and big data application technologies. Going forward, POSCO plans to build a “Smart Industry” to increase steel competitiveness and create new business opportunities with new, smart technologies.

SEE ALSO: How Factories Produce Steel- the Smart Way

5. Getting in on electric vehicles

The market for electric vehicles (EVs) is an exciting one with so many companies investing in new technologies. POSCO also hopes to extend its customized material and technology solutions to EV manufacturers. Last October, the company held the Global EV Materials Forum to showcase four of its core business areas: lightweight bodies, batteries, motors and charging infrastructure. More than 380 clients took part in the forum to learn about emerging trends and POSCO’s products and services including POSCO GIGA STEEL and commercially produced lithium batteries for EVs.

POSCO is a solutions provider for EV manufacturers. (Source: Bloomberg)

6. POSCO’s new marketing approach

For the first time ever, POSCO created and aired a TV commercial highlighting a specific product, instead of its corporate brand. This marks POSCO’s first B2C marketing effort and features the company’s innovative auto steel, POSCO GIGA STEEL. The commercial compares POSCO GIGA STEEL to aluminum, another widely-used lightweight material in a visual demonstration so that everyday drivers can better understand the benefits of a stronger yet lighter material.

7. Going for 10 million tons of automotive steel

On April 26, POSCO completed 7CGL, a new steel production facility in Gwangyang, Korea, designed exclusively for the production of POSCO GIGA STEEL. 7CGL has an annual capacity of 500,000 tons and is the world’s first plant capable of producing both 1.5 giga-level galva-annealed (GA) and galvanized (GI) steel sheets.

POSCO Completed 7CGL on April 26, 2017. (Source: Business Korea)

In addition, POSCO managed to reduce investment funds and secure cost competitiveness by designing and constructing 7CGL’s core facilities based on accumulated facility technologies and operating know-how. The 7CGL is POSCO’s 12th plant exclusively for automotive steel sheets, and POSCO aims to sell 10 million tons of automotive steel in 2018 globally.  

8. Setting new records with high manganese

POSCO became the first company in the world to commercialize the technology for producing high manganese using fusible ferroalloys. The technology took KRW 5.5 billion of research and development costs and four years to complete.

POSCO is the first company in the world to commercialize its high manganese production technology. (Source: Eramet)

The core part of POSCO’s high manganese production process is PosLM (POSCO Liquid Manganese), a special holding furnace that stores manganese ferroalloys in a fusible state. POSCO’s technology reduces the production time for high manganese steel by more than 50 percent as well as increases slab production efficiency. PosLM was jointly researched and developed by the Institute of Technology and POSCO M-tech.

9. Bringing home the lithium

On February 7, POSCO opened its PosLX (POSCO Lithium Extraction) plant with an annual capacity of 2,500 tons. The plant is the first plant in Korea capable of commercial lithium production. The technology took 7 years to perfect, but it was well worth it. The production process for high purity lithium now takes just 3 months, compared to the previous 12 to 18 months.

POSCO is making lithium extraction more efficient and sustainable. (Source: Mining)

In the past, Korean manufacturers imported the entire quantity of lithium they needed. With POSCO’s PosLX plant, partners now have access to a local supply of lithium. Moreover, POSCO plans to use lithium phosphate extracted from wasted secondary batteries as raw materials, in keeping with the company’s sustainability standards.

POSCO will continue building on a successful 2017 in the new year, by tackling new challenges and continuing to provide its partners with customized and optimal solutions in all business areas.

Cover photo courtesy of Hitech Building Solutions.

Smart factories are bringing AI, IoT and Big Data to the manufacturing industry.

#1 How Smart Factories are Changing the Manufacturing Industry

The Fourth Industrial Revolution is bringing AI, IoT and other automated technologies into people’s lives and changing the way they live and interact with one another. It is also bringing about change in the manufacturing industry as more companies embrace smart factories to further enhance efficiency, performance and safety. Take a deeper look at how smart factories are reinventing the manufacturing industry.

SEE ALSO: How Factories Produce Steel- the Smart Way

POSCO GIGA STEEL also offers electric vehicle manufacturers a lightweight material solution.

#2 POSCO GIGA STEEL Increases Strength, Improves Safety in Autos

This year, POSCO GIGA STEEL set a new, industry standard for strength and formability for auto steel. The advanced high-strength steel (AHSS) is an automaker’s dream come true as it falls into the strongest category of steel commercially available today. Plus, its lightweight property makes it the perfect solution for manufacturers trying to design safe, high-performing and sustainable vehicles.

SEE ALSO: Ask an Expert: Has Steel Achieved Its Peak in Lightweighting?

Lithium-ion batteries are found in some of the most popular devices available today. (Source: BGR)

#3 POSCO’s Innovation Shapes the Ever-Growing Lithium Market

POSCO is the world’s 5th largest steel producer, but it’s got more up its sleeves than just steel. This year, POSCO developed game-changing technology that extracts lithium from water in just 8 hours to one month. Traditionally the task takes anywhere from 12 to 18 months. To add, the new technology can achieve a purity rate of 99.9 percent and increases the lithium recovery rate to over 80 percent.

Lithium is a central component in rechargeable batteries for electronics such as smartphones, laptops and most importantly, electric vehicles (EVs). Heading into 2018, POSCO is well-positioned to be an industry leader in a rapidly-growing market for EV batteries.

SEE ALSO: The Fuel of Tomorrow: Mining Lithium for Tomorrow’s Cars

POSCO CEO Kwon Ohjoon fires up Pohang Blast Furnace No.3

#4 POSCO Gets “Smart” with Pohang Blast Furnace No.3

In June, one of POSCO’s oldest and the world’s 5th largest blast furnace got a makeover with some added AI. After undergoing 102 days of repairs, Pohang Blast Furnace No.3 came back much bigger with an expanded furnace volume of 5600㎥, compared to its original volume of 3795㎥ from its beginnings in 1978. Plus, Pohang Blast Furnace No.3 now has smart sensors to monitor operations and detect malfunctions or accidents before they happen.

SEE ALSO: How to Make Steel with an Old(ie but Goodie) Blast Furnace

Ajay Telrandhe in Quality Assurance and Manish Kochar & Chetan Waghchoure in Sales talk to the Steel Wire.

#5 Ask an Expert: POSCO Leads India’s Growing Automotive Steel Market

POSCO Maharashtra is POSCO’s leading subsidiary. Three of their employees gave the Steel Wire an insider’s look into the company’s success, despite a challenging market environment and government restrictions. The team in India implemented positive changes in the company’s steel quality, production processes and customer service to become a leading solution-provider for their automotive partners.

SEE ALSO: Revving Up for Growth: India’s Automotive Market is In Full Gear

EVs, autonomous vehicles and shared mobility will drastically change the auto industry. (Source: Electrek)

#6 Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University, was the first speaker at POSCO’s 2017 Global EV Materials Forum. Zoepf shared his vision of what the future automotive market will look like and its implications for car manufacturers, suppliers and drivers. According to research, 60 percent of the cars in the U.S. will be running on electric batteries by 2030, and those cars will mostly be part of a shared mobility service. Traditional ways of car production, distribution and consumption will undergo massive change and companies will have to find ways to stay competitive in the new market dynamics.

SEE ALSO: The Forgotten Fleet: Looking Back on Early Electric Vehicles for a Better Future

Steel dresses from Naim Josefi’s 2017 F/W GANGS collection. (Source: Naim Josefi)

#7 Ask an Expert: Fashion Forward with Steel

Fashion designer Naim Josefi opened new possibilities for steel application with his 2017 F/W GANGS collection which included dresses made of elaborate steel sequins and laser-printed jeans. He is also known for his 3D-printed high heels that provide the perfect fit. The artist has a passion for fusing technology into his work and finding more sustainable ways to create beautiful clothes and says he will continue to use steel as a high-tech, fashion material.

Heading into a new year in 2018, the Steel Wire promises to be the best source of steel industry news and continue to provide exclusive, insightful and interesting stories.

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.

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