Posco, Erae get big order from Rivian
Posco International and Erae AMS are supplying an auto component for Rivian’s electric vehicles.
Posco International, the trading arm of steelmaker Posco, said Tuesday that it and Erae AMS will supply half shafts to be used in 340,000 electric vehicles made by Rivian, the U.S.-based electric truck maker. The 145 billion won ($130 million) deal is the second partnership with Rivian.
In August 2020, Posco International and Erae AMS signed a deal with Rivian to supply the component for 20,000 electric vehicles.
They will start supplying the auto component next year.
Erae AMS, a Daegu-based company that manufactures vehicle parts for Hyundai Motor, Audi, Honda, Nissan and General Motors, will manufacture the half shafts, while Posco International finances the deal.
“Based on the latest supply [deal], we have secured an advantageous position in expanding the auto part business for electric vehicles,” said a spokesperson for Posco International, adding that it is seeking to expand its partnership with Rivian in the future.
Rivian, which debuted on the Nasdaq stock exchange on Nov. 10, is seen as the next Tesla by some auto analysts. After its shares peaked at $179.47 apiece on Nov. 16, the stock fell to $118.11 as of Nov. 22, though that was 51 percent higher than the $78 IPO price.