South Korean firms have been boosting their efforts to expand their presence in the electric vehicle market through a partnership with Rivian. The rising U.S electric vehicle maker has been in the global spotlight for its potential to become the next Tesla.
According to the industry, Posco International will be supplying around 145 billion won ($122 million) of half shafts for 340,000 vehicles produced by Rivian. While domestic partner Erae AMS will work alongside it to begin delivering the ordered amount next year.
Earlier in April, the U.S automaking startup had already announced that it selected Samsung SDI as a battery supplier for its R1T pickup and R1S SUV, which is slated for a launch due next month.
According to market experts expect, Posco International could profit at least 200 billion won from the supply deal, considering the vehicles’ exceptional response, with 150,000 preorders.
Rivian is also reportedly seeking to work with LG Energy Solution, as the latter’s LFP batteries could be a good fit if the company adopts iron-based cells in their base vehicles.
According to reports, as Rivian plans to start producing its owns batteries from 2023, other midsized Korean battery equipment producers have also won orders from the U.S automaker. The company is planning to build a battery manufacturing factory envisioned for some 100 gigawatt-hours annually.
South Korean, Hyundai Motor Group auto parts affiliate Hyundai Transys has signed a deal with Rivian to deliver seats for all of its electric trucks and SUVs made through 2027.
The electric vehicle startup, Rivian was founded in 2009 and has been financially backed by U.S corporate giants such as Amazon and Ford.
The company’s stocks on Nov. 10 debuted with as many as 153 million shares sold at an initial offering price of $78, thus bringing the valuation of the company to $66.5 billion. The offering raised nearly $12 billion in financing.
However, the company’s shares have largely been volatile since the IPO. Its shares skid 8 percent on Monday after Ford announced its plan to halt building a vehicle with Rivian.
In 2019 Ford had bought a $500 million stake in Rivian for a strategic partnership to create a vehicle on the latter’s development platform.