Posco Int'l inks third deal with Rivian

Posco International signed a third supply contract with Rivian for its electric vehicles.

Posco International, the trading arm of steelmaker Posco, announced Thursday that Rivian, the U.S.-based electric vehicle maker, will buy output shafts for 90,000 vehicles. The deal is worth $6 million.

Sacheon, South Gyeongsang-based Myeongcheon Industries will manufacture the shafts, and Posco International will finance the deal.

Output shafts transmit power from the transmission to the wheels.

In August 2020, Posco International signed a deal with Rivian to supply half shafts for 20,000 electric vehicles. Another deal was announced last month to supply half shafts for 340,000 vehicles.

Erae AMS , a Daegu-based company that manufactures parts for Hyundai Motor, Nissan, General Motors and Audi, is making the half shafts.

Posco International, 62.9 percent owned by Posco, said in a statement that it is trying to land additional deals with Rivian.

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, their price fell to $115.69 as of Wednesday, though that is still up 48 percent from the $78 IPO price.

BY JIN MIN-JI [jin.minji@joongang.co.kr]