POSCO International, the trading arm of South Korean steel giant POSCO, said Tuesday it and a smaller domestic partner will supply half shafts for electric vehicles (EV) to Rivian Automotive.
POSCO International and Erae AMS have won the 145 billion won ($122 million) order to supply the parts for some 340,000 EVs to be produced by the American EV startup, the company said in a release.
That raises the total to be supplied to Rivian to an amount enough for 360,000 units, as POSCO has already signed a separate deal to supply the half shafts for 20,000 vehicles.
A half shaft works as a driving shaft in the battery EVs.
POSCO and Erae will begin to supply the parts next year.
POSCO and Erae have teamed up to supply key auto parts since 2011. The two signed a similar deal last year to supply the half shafts to Vietnamese automaker Vinfast.