POSCO Chairman Choi Jeong-woo delivers a speech at POSCO Group’s Corporate Day that took place at the Conference Center of the Federation of Korean Industries Building in Yeouido, Seoul, on Nov. 21.

POSCO came up with strategies to be an integrated material company to lead the era of new mobility in cooperation with its subsidiaries. As the EV and battery sectors have emerged as major axis markets to lead fundamental changes of the automobile industry, POSCO plans to cope by converging its capabilities.

POSCO’s latest move was unveiled at POSCO Group’s Corporate Day that took place at the Conference Center of the Federation of Korean Industries Building in Yeouido, Seoul, on Nov. 21.

In the joint IR session of POSCO subsidiaries, POSCO Research Institute announced POSCO Group’s strategies to brace for an era of electric vehicles.

About 60 analysts and institutional investors participated in the IR session, as well as POSCO and five other listed POSCO companies, including POSCO ICT, and unlisted POSCO companies.

A view of POSCO Group’s Corporate Day that took place at the Conference Center of the Federation of Korean Industries Building.

Park Jae-beon, senior researcher with the POSCO Research Institute, said EVs are predicted to settle as a mainstay market after overcoming a chasm. EV sales are forecast to surge from 980,000 units in 2017 to about 4 million units this year, and the production of materials for EVs is predicted to jump from 610,000 tons in 2017 to 920,000 tons this year, he said.

Full-fledged electrification brings about opportunities and risks for POSCO.

A decline in global demand for vehicles is feared to cause a drop in steel consumption. On the contrary, a shift to EVs is expected to bring about new demand, particularly a possible rise in steel for vehicles whose structure is expected to undergo changes. An internal-combustion engine requires steel of 1,098 kg whereas an EV, using an electric grater of 85 kg, needs steel of 1.163 kg.

POSCO Group has now built up a portfolio of materials and parts related to EVs and battery products. POSCO produces vehicle steel, wire ropes, lightening material solutions, battery steel and lithium.

POSCO International specializes in automotive lightening materials and motor core while POSCO Chemical produce anode materials and cathode active materials. POSCO C&C specializes in coated steel sheet.

A POSCO official said POSCO Group has a portfolio of the widest-related materials among material production companies to cope with the new era of new mobility. In particular, POSCO aims to be a top global company with a more than 20 percent share in the secondary battery materials market.

POSCO also plans to forge strategic collaboration to build up an ecosystem with automobile-related companies. POSCO has utilized vertical integration for raw materials, so POSCO now supplies steel and supplies for batteries, allowing the group to collaborate with other companies.

POSCO plans to create demand and expand markets through collaboration with Korean and foreign customer companies.

An aerial view of POSCO Center in Seoul. (Photos: POSCO)