South Korea’s Posco International has signed a contract to supply auto parts including half shafts to the first-ever electric vehicle manufacturing venture in Vietnam called VinFast. It will supply these parts next year after successful testing.
Vietnam’s leading group of companies, VinGroup is backing VinFast. Posco International will supply parts in tie-up with the domestic auto parts manufacturer Arae Automotive Systems Co. (AMS) in South Korea, said a company release. These parts will be used in about 100,000 electric vehicles supposed to be manufactured in the first lot. It will especially supply, a half shaft, an auto part that transmits engine power from the transmission to wheels it acts as driver shaft in battery electric vehicles.
Posco International is aiming to expand fast in Southeast Asian countries. The deal will help the company shift focus from traditional vehicles to environmentally friendly electric vehicle car. Posco also supplies Hyper NO sheets (Low iron non-oriented electrical steel sheet) for electric vehicles.