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/

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

It Wasn’t Always Smooth Sailing

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

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

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

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

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

A Strategy for Success

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

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

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

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

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

Cultivating the Industry

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

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

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

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

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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