Since the inception of the auto industry, steel has been used to manufacture cars because it is strong, manufacturable, and durable. Also, because roughly 55-60% of a car’s weight comes from steel, it is an obvious place to make lightweighting a priority, which is exactly what has happened. Recent innovations in steel production technologies have created solutions that are lighter, stronger, and more environmentally friendly to produce.     

Steel Alternatives Present New Obstacles for Car Manufacturers

Advanced High Strength Steels (AHSS) provide the most eco-friendly alternative for car makers in material production. (Chart courtesy of AutoSteel)

As the auto industry adapts to new government regulations and consumer expectations, many have been looking toward alternative materials to step in as a substitute for steel. However, each material carries both benefits and drawbacks that they must constantly weigh as they seek to strike a balance that adheres to safety & emissions regulations and consumer demand.

Aluminum, magnesium, and carbon fiber composites are all being used to various degrees in recent auto designs. They have become attractive as lightweighting has become more of a priority for car manufacturers; however, there are tradeoffs.

Certain types of aluminum can be weaker, more expensive, and less formable than some steels. Magnesium, while lighter than both steel and aluminum, is also more expensive. In addition, extraction of magnesium can emit more than 20 times more carbon emissions than steel. Lastly, while carbon fiber composites offer the most in lightweighting potential, it is still prohibitively expensive for mass produced cars, and producing carbon fiber is 14 times more energy intensive than steel.

Advanced High Strength Steel Offers Lightweighting Solution

Typically, to make steel lighter, sacrifices had to be made in strength and ductility. However, recent innovations in advanced high-strength steels (AHSS) have been able to bridge that gap.  AHSS offers lightweight solutions with high ductility coupled with high tensile strengths that can go beyond 1,000 MPa – meaning it can withstand more than 100 kilograms-force per square millimeter.  

In addition, compared to alternative materials used in autos, AHSS offers the most eco-friendly option for car markers. It has the lowest production emissions and because it is infinitely recyclable and durable, it can be used in multiple applications throughout its life cycle.

AHSS grades allow car manufacturers to achieve a new level of strength, ductility, and durability in steel that is also lighter and more eco-friendly due to improved production efficiencies.

Third generation AHSS provides both high tensile strength and elongation. (Chart courtesy of World Autosteel)

The Third Generation of AHSS

Recently, engineers and researchers have been working to improve the balance between strength and elongation in AHSS. Typically, conventional mild steels offer superior elongation with less strength, whereas previous AHSS offered superior strength with more elongation and ductility.

The third generation of AHSS is bridging that gap, producing steel that is both incredibly strong and ductile at the same time. Typical mild steels have a tensile strength of around 300 MPa, which means it can withstand up to 67 pounds per force per square millimeter. On the other hand, new third-generation AHSS typically have a tensile strength of 800-1500 MPa (up to 300 pounds per force per square millimeter) with a similar amount of ductility.

In tensile strength measurements, 1,000 megapascals equals 1 gigapascal. Steel that has a tensile strength over 1,000 MPa is often referred to as GigaPascal steel. This type of AHSS is both super strong and also lightweight.

AHSS provides car makers with a lightweight, strong material solution.

GigaPascal Steel and the Future of Auto Manufacturing

GigaPascal steel represents the cutting edge of steel technology and the future of auto manufacturing. Its high strength and lightweight properties make it safe and efficient. It provides car makers the material they need to meet efficiency and safety standards, with significantly fewer production emissions.

Two weeks ago SsangYong Motor unveiled their new G4 Rexton SUV at the Seoul Motor Show. They partnered with POSCO to develop the core body frame parts using its new POSCO GIGA STEEL. The SUV was designed so that 63% of the body contains POSCO GIGA STEEL – a first for the auto industry, but not the last.

SsangYong Motor’s G4 Rexton is unveiled at the Seoul Motor Show in March 2017. It is the first vehicle to be made with up to 63% giga steel.

As the auto industry seeks to build more efficient and safe vehicles, advancements in steel technology have emerged to meet their needs. Balancing efficiency, strength, weight, and price – steel continues to be the preferred material in auto manufacturing.

Throughout April & May, The Steel Wire will explore the uses and benefits of AHSS, POSCO GIGA STEEL, and what POSCO is doing to lead the industry with new automotive steel solutions.   

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.

Volkswagen brought back its iconic Microbus in the form of a new electric, self-driving ID Buzz concept car. (Engadget)

The headlines from the Consumer Electronic Show (CES) were all about self-driving, electric, and connected cars. As these topics continued to be highlighted at NAIAS (see the new Volkswagen ID Buzz pictured above), there was also a focus on the importance of structural design.

Innovations in high-strength steel have allowed car makers to reduce the weight of vehicles without compromising safety. From large sedans to electric vehicles, advances in steel were spotted all throughout this year’s NAIAS with BMW’s new 5 Series and Ford’s new 2018 F-150 both showing off their lightweight aluminum and high-strength steel compounds that helped shed more than 100 kg from the BMW model.

The push to make vehicles lighter raises safety concerns. Lighter cars require lighter steel, and to make lighter steel there are typically other compromises that have to be made. POSCO, however, with its advanced high-strength automotive steel, has found the solution for automakers to make cars that are both safe and lightweight.

The new BMW 5 Series (left) and Ford F150 (right) made their debut at the North American International Auto Show. Both models used advanced high-strength steel to reduce weight and maintain safety. (NAIAS Image Archive)

POSCO’s Lightweight Auto Solutions Increase Safety

In 2016, POSCO became the first steelmaker to participate at NAIAS, displaying its advanced high-strength steel for automobiles, including its the PosM Steel and hot press forming steel (HPF). PosM Steel is five times stronger than other types of steel making it great for impact absorption and increased safety.

Providing a rapid solution upgrade for strengthened crash requirements, the safety of POSCO’s advanced materials has been certified by the Insurance Institute for Highway Safety (IIHS). In addition, the strength and crashworthiness of POSCO’s advanced steel solution received a score of 5 stars from USNCAP and ‘good’ safety ratings on the IIHS Moderate Overlap Front and Small Overlap Front tests. By reducing possible safety concerns with high strength body solutions, POSCO is able to contribute to the advancement of global auto manufacturers.

With steel being more important than ever in the auto industry, POSCO’s commitment to improving the strength and safety in its automotive steel has helped it maintain its position as a global industry leader. As Gregory Warden of GM said, “there is a whole new generation of steel coming” – and POSCO is helping to lead the way by creating new solutions that guarantee safety and fit the unique needs of its partners.

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POSCO will exhibit its technology for the first time as a steelmaker at the North American International Auto Show in Detroit on Jan. 11 to 24.

TWIP is the “dream material” that has improved its intensity and machinability, and has been produced by POSCO for the first time as a steelmaker, representing the unique power of POSCO’s technology.

This steel’s intensity is five times stronger than other steel in terms of machinability, while withstanding up to 100 kg per mm². Therefore, it proves excellent in impact absorption and increased safety. This technology can be applied to bumper beams of automobiles. Many competitors have tried to develop TWIP, but failed to deploy it on a commercial scale.

HPF steel is hard to process when the intensity level exceeds 1.5 GP. To counteract disadvantage, HPF has increased its machinability through heat treatment. This product can be applied to center pillars to protect passengers from external accidents. POSCO has become the world’s first steelmaker to successfully produce a product in level of 2GPa. This product was first introduced as Renault’s 1 L concept car at the Paris Motor Show in 2014, and it earned favorable reviews.

POSCO will also showcase the 1GPa-TRIP, a recently developed steel with high intensity and ductility, and the PosM_XF (extra formability), the next generation TRIP with improved machinability.
For the NAIAS, POSCO aims to attract global automakers’ purchasing needs by revealing the most idealistic steel plates for automobiles.

About 30 high-strengthened and light weight products including POSCO’s original products are being exhibited at this year’s motor show. POSCO plans to get attention from global automobile companies by presenting the auto body made with most ideal and the world’s best car sheets.

The weight of the steel itself is about 26.4 percent lighter compared to mid-sized vehicles and has been verified in terms of safety. It received a five-star safety rating, as well a “good level.” which is the highest level possible, for internal performance evaluation conducted by 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 the internal combustion engine body was 50 percent lower, and average electric car emission was about 9 percent less. It also gives off fewer emissions of CO2 compared to electric vehicles made with one-third the gravity of aluminum in comparison to iron.

POSCO currently supplies automobile steel sheet to the automobile manufacturers and component manufacturers, including the global top 15 companies such as Toyota, Volkswagen, and GM through 10 automobile production plants and 24 machining center. POSCO has proven its quality excellence by receiving “This Year’s Supplier” from the world’s leading automotive companies such as Toyota and GM.

POSCO is planning to expand 70 percent or more of World Premium (WP) steel sheet sales ratio by not only supplying products but also providing use of technologies such as molding and welding for customer’s best utilization of certain products through the development of solutions marketing activities.

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POSCO (NYSE: , PKX) held IR conference call on October 23^rd, to announce its 3Q performance results.

On a consolidated basis, the company recorded 16,270 billion KRW (About 14.4 billion USD) in revenue and 879 billion KRW in operating profit. Operating profit margin went up to 5.4%, 0.4%pt increase from 2Q, due to stabilization of global steel business and increased profit in the energy sector.

Especially, Indonesian integrated mi started operation from January 2014, showed utilization rate of 82% and 24% increase in sales volume from the 2Q, which resulted in 3Q operating profit. Also, POSCO India’s electrical steel mill turned the profit through expanding its sales base. With support from the stabilized performance of overseas steel mills, steel sector profitability recorded 5.3%.

Meanwhile, Daewoo International’s Myanmar gas field showed 20% of an increase in operating profit from 2Q, as production expanded as scheduled. Along with the increase in production volume, the operating profit of POSCO Energy has also increased by 138% from 2Q.

POSCO stand-alone revenue reached 7,290 billion KRW (7.2901 trillion USD) and operating profit recorded 635 billion KRW. Due to increased export to overseas production centers, POSCO’s product sales and operating profit have enhanced. As a result, POSCO has recorded operating profit of 8.7%, which is 1.1%pt increase from 2Q.

POSCO is also expanding its automotive steel products sale, by using global production sites and sales network. As POSCO continues to expand sales to global automakers towards target regions, including the U.S. and China, through 5 automotive steel product mills, and 47 coil centers, POSCO expects to reach 8.2 million ton in total sales amount of automotive steel in 2014.

POSCO’s client-oriented solution marketing activities have contributed to the increase in a high-value steel product sales. Adding to the development of high-strength PosM Steel, super austenitic stainless steel products and magnesium panel, the new automotive lightweight material, the sales of the solution marketing products have increased up to 407 thousand tons, which is 59% increase from 2Q.

Although the steel demand in 4Q is expected to increase slightly, due to seasonality and the slow market conditions of the automobile industry, POSCO plans to steadily expand the client-oriented solution marketing activities.

Moreover, POSCO has continued to reduce carbon emissions through activities, such as building off-gas power plants. Furthermore, POSCO will continue its social contribution to reducing greenhouse gases by development and sales of high strength steel for a lighter-weight automobile.

In April, POSCO held ‘Tech Day’ events at the headquarters of global car manufacturers in Detroit. The events introduced POSCO’s superb global network, steel technology, and value chain. I personally visited the scenes, which was a great opportunity to witness POSCO’s competence in promoting its cutting-edge technologies and positive reactions from the clients. As one of ‘Hello, POSCO’ global storytellers, I would like to share the enthusiasm I could feel from Tech Day.

Visiting global carmakers to demonstrate POSCO’s cutting-edge technologies

From 2009 to 2012, POSCO held Tech Day events in Japan and Europe, visiting major players in car manufacturing industry. We presented our high-quality products and efficient line of production to Toyota, Honda, Renault, Nissan, Suzuki, Fiat, Mitsubishi, and Mazda.

For this year, POSCO, POSCO SS, POSCO Chemtech, POSCO AST and five automobile parts partners from Korea joined Tech Day events at development facilities of GM, Ford, and Chrysler in Detroit. POSCO displayed high functional steel, ultra high strength steel, hot press forming steel, PosM Steel, EVI & PBC-EV, Magnesium, technical services and automotive parts.

POSCO was able to deliver comprehensive presentations, introducing the world’s leading steel company’s value chain for manufacturing automotive parts. From the basic research undertaken by POSTECH to joint venture with POSCO Family affiliates, our firm partnership of manufacturing high-quality car parts was explained to the global carmakers with visual materials, parts samples and an electric vehicle body concept model.

POSCO Tech Day receives highly positive responses

I heard that POSCO had expected about 900 visitors for the three-day tour but in the end, we greeted more than 1,800 people who shared their positive reviews on our products and vigorous commitment. Notably, the guests’ interests were focused on the ‘third-generation AHSS development,’ designed for lightweight vehicles. They also praised POSCO’s unique concept models of high-intensity steel products such as GI 1500MART and 340ES.

Personally, I think the zenith of POSCO’s Tech Day events held in this year was the announcement, jointly made by POSCO, GM, and Chrysler. The three companies have agreed to hold regular engineer exchange programs to develop high-tech automotive parts. I believe the decision will be paid back with a series of great successes, putting POSCO to the next level of perfection as a leading global steel manufacturer.

Overall, I reckon the main goal of the exhibition, to display POSCO’s newly developed automotive technologies and the ways to reduce the cost for customers, was perfectly accomplished. Also, I would like to thank POSCO’s on-site staff who worked really hard for creating the commendable result. I wish to get back to ‘Hello, POSCO’ soon with more great news about POSCO’s global operations in near future.