Today, POSCO global blog will try to explain the basics of electric vehicles.

Pictured here: POSCO exhibit set up at The 1^st International Electric Vehicle Expo held in Jeju

What is an Electric Vehicle?

An electric car is basically an automobile that is powered by electricity. It is powered by an electric motor that runs on a rechargeable battery as opposed to a gasoline engine. Electric vehicles has gained widespread recognition predominantly because it is the environmentally-friendly alternative to gas guzzling automobiles.

Why should you care about Electric Vehicles?

Pictured here: EV on display that promotes ‘zero emissions’

 You might have heard the word ‘electric car’ lately, but might not understand what the direct benefits are. The major reasons that electric cars is top-of-mind for the auto industry and society as whole are for the following reasons:

1)      Less pollution: Electric cars are an eco-friendly alternative to gasoline powered cars as they create less pollution

2)      Cost effective in the long-run: Electric cars run on electricity so you can save up on annual car fuel costs and expensive maintenance related to oil changes, fuel filters, etc.

3)      Reduces fuel dependency: Electric vehicles can be powered by electricity produced from multiple energy sources including wind, solar, hydro, nuclear, biofuel, and fossil fuel sources. Therefore, electric vehicles have the potential to support economies while also reducing dependence on imported oil.

4)      Better Sound Quality: Electric cars may be difficult to differentiate from regular cars from the outside, but electric motors provide quiet and very smooth operation.

Challenges for Electric Vehicles

That is not to say that electric vehicles face no challenges. Driving range is a concern for consumers as gasoline vehicles can go longer distances. Recharge time and overall bulk are concerns also. Companies, including POSCO, are continuously investing time and energy to improve technologies and materials for electric vehicles.

Pictured here: Entrance to 1^st International Electric Vehicle Expo in Jeju

During March 15 through 21, the 1^st International Electric Vehicle Expo was held in Jeju Island, south of the Korean peninsula. More than 40 companies attended the event and consumers were able to see firsthand electric cars including Kia’s Ray EV, Reno Samsung SM3 Z.E., Chevrolet Spark EV, Kia Soul EV and BMW i3. Nearly 50,000 visitors came to the expo where POSCO Group showcased its innovative electric car technology.

Pictured here: POSCO exhibit at 1^st International Electric Vehicle Expo in Jeju

Of the participating companies, POSCO was the only company to offer a total solution that addresses materials, rechargeable infra and service. POSCO was the first steelmaking company to develop a body for an electric vehicle concept, solidifying its position at the forefront of electric vehicles.

POSCO Group’s <Total Solution>

Pictured here: POSCO executives gathered at the Expo in Jeju

POSCO Group companies including POSCO ICT, POSCO ChemTech, POSCO TMC and POSCO ESM were all present for the expo. As the first steelmaker to create the concept body for electric vehicles, POSCO proved that its steel solutions continue to provide value for the future of electric vehicles. The exhibit was divided into three parts consisting of rechargeable infra needed by electric vehicles, service and materials.

POSCO ICT’s electric vehicle rechargeable infra solution can be applied to all types of vehicles. Moreover, users are able to recharge without having to carry an external cable.

Pictured here: Chevrolet electric vehicle on exhibit being recharged

In addition, in order to improve the user experience, POSCO is offering a variety of convenient services. POSCO ICT has set up charging infrastructure around Jeju so travelers do not need to worry about lack of electricity. Beginning this June, POSCO ICT will form a partnership with E-Mart·BMW to offer easier charging services anytime, anywhere. POSCO ICT will also be forming a partnership with Seoul car sharing services to provide rechargeable infra.

POSCO also highlighted its commitment towards Nd magnets. Nd magnet, which is made of a rare earth metal, is an integral part of electric vehicle motors. They are currently imported from Japan and China. The Nd magnets that POSCO supplies can be applied to domestic electric vehicles and can reduce the dependency on imports.

State-of-the-Art Technology for Future Electric Vehicles

Pictured here: Compact-sized electric vehicle

Compared to internal combustion engines, electric vehicles are still trailing behind in terms of mileage and battery weight. Therefore a variety of new technologies are being applied for lightweight car bodies. For this reason, new materials beyond the previous aluminum and steel are being introduced into the development of electric vehicles.

POSCO is the first steelmaker to develop steel that is optimized for electric vehicle bodies. PBC-EV (POSCO Body Concept-Electric Vehicle) is the car body that was developed to showcase the state-of-the-art technology POSCO has recently developed for future electric vehicles.

PBC-EV has set the standard for EV steel solutions. It is made from cutting-edge steel and the latest components technology for an integrated solution that has reduced weight of 26.4% compared to previous car bodies.

Pictured here: Regular-sized electric vehicle made by Renault Samsung Motors

The Future of Electric Vehicles

As companies continue to improve and build upon existing electric vehicle technologies, the growing prominence of electric vehicles is highly probable. As an environmentally-conscious company, POSCO hopes to see more growth in this field. Would you buy an electric vehicle?

In the third quarter, both sales and operating profit were reduced compared with the last quarter due to a depression in demand, a selling price fall and rising cost of feed stocks during the off-season worldwide, along with cut-production policies followed by an unprecedented power shortage, but POSCO managed to minimize the decrement through product differentiation and cost-reduction measures.

The market share of the ‘world-best’ products that POSCO produced with its world’s top three technologies and economic feasibility such as high-strength tire code and eco-friendly AHSS (Advanced High-Strength Steel) and the ‘world-first’ products that POSCO developed for the first time in the world has continued to increase, and in the end, reached 22.5% from 15.5% in the third quarter of the last year.

In terms of cost reduction, a total of 494.7 billion won was saved including 223 billion won in the cost of raw materials, 75 billion won in material costs and 121 billion won in expenses.

In addition, POSCO made a significant achievement this quarter in expanding its energy and material markets that were promoted in keeping with the upcoming age of slow growth in the iron and steel industry. Based on the consolidated financial statement, operating profit in the steel market reached 3.5%, whereas operating profit in energy and chemical materials markets marked 7.5% and 4.1%, respectively, and accordingly exceeded operating profit in the steel market.

POSCO predicted that the global demand of steel will recover in the fourth quarter. It is expected that the Chinese steel market will begin to recover as the overstock problem, which was the main reason behind the weakening of steel prices in the Chinese market, is solved, together with an increase in stock and imaginary demand in the course of preparing for the Chinese New Year. Moreover, the global steel demand in 2014 is expected to reach about 1 billion tons along with a stable increase of 3% in demand as there is an indication of an increment in moderate demand among advanced countries with signs of economic recovery.

In line with the business recovery in the fourth quarter, POSCO plans to concentrate all its efforts to strengthen the high value-oriented in-depth marketing, and therefore improve business performance. The plan is to promote the total-solution marketing activities through which customer-oriented service is provided in the entire process from product designing to sales, in order to increase the market share of the world-first and world-best products, and at the same time, amplify the synergy between its subsidiaries by concentrating on the capabilities of the main business.

Meanwhile, POSCO announced the sales goal of 63 trillion won based on the consolidated financial statement, and of 31 trillion won for POSCO alone this year, and the consolidated investment of 8 trillion won, and alone, 4 trillion won.

Between 6th and 9th May, POSCO joined the Offshore Technology Conference (OTC) in Houston, U.S.. During the conference, POSCO promoted energy steel products created by its own specialized technologies. Let’s find out how global players reacted to POSCO’s top-notch technologies, which would lead the future of steel industry in coming years.

POSCO participates in the world’s biggest Offshore Technology Conference

Established in 1969, OTC is the biggest international conference for offshore operation technology. For this year, 2,500 companies from 110 countries participated in the event. POSCO has been joining the conference for the last six consecutive years since 2008.

POSCO sets up a joint booth with five affiliates, emphasizing its ‘Value Chain’

During the event, a joint promotional booth was set for POSCO E&C, POSCO Specialty Steel, POSCO Plantec, Sungjin Geotec and POSCO Engineering. At the booth, POSCO’s energy steel plates, such as thick steel plates and API-X120, and a miniature model of offshore plant structure were exhibited to highlight the leading global steelmakers’ value chain.

POSCO catching the public eye with cutting-edge products

1,500 visitors, including Gwan-sub Lee, head of industry policies at the Ministry of Trade, Industry and Energy, major oil companies, EPC companies and energy equipment manufacturers called at the venue and showed great interests in POSCO’s competence in developing steel plates for energy uses.

POSCO also caught many eyes with its special reception for the major oil and EPC companies with a presentation illustrating the advantages of POSCO’s energy steel plates and POSCO subsidiary companies’ business competence, followed by a traditional Korean performance. POSCO also signed an MOU with Fugro, the world’s No.1 geotechnical company, as well as discussing cooperation methods and sales strategies for POSCO’s energy steel plates with Shell and the Korea National Oil Corporation.

During the reception ceremony, In-Hwan Oh, Head of Carbon Steel Business Division of POSCO, addressed “By participating in this conference, POSCO is aiming to maximize the synergy with Korea’s top 3 major shipbuilders and other equipment manufacturers through becoming a powerful supporter of oil and gas industries and a total solution provider.”

With the market data and contents of counseling collected from the conference, POSCO will strengthen the firm’s business and promotional activities in order to achieve the accompanied growth with other Korean corporates. In addition, POSCO will expand the sales of energy steel plates to the global top players of the energy industry by raising the brand awareness as well.