POSCO To Supply Automotive Steel To Tesla

15 July 2016

According to auto and steel industry sources on July 14, POSCO signed a memorandum of understanding (MOU) with Tesla to supply its automotive steel sheets to Tesla's Model 3, which is to be released at the end of next year.

Automotive steel is largely divided into panels, including front hood, structural materials, which forms car body, and stiffeners like bumpers. Under the agreement, POSCO will provide Tesla with structural materials forming a car body. Since a car body is considered the “bone” of the human body, it is usually consisted of high-strength steel materials. Tesla has decided to use POSCO’s steel products in A fillers, which support both sides of the front windshield.

Tesla aims to release the Model 3 next year, and the company received 325,000 preorders for the model in a week in March.

During an event, Elon Musk, CEO of Tesla, said that the Model 3 has a range of 346 km on a single charge. He also added that he would increase its driving ranch further by the release date in 2017.

An official from the steel industry said, “The supply of parts to Tesla’s EV models holds symbolic meanings, rather than short-term performance like profits and sales. It means that POSCO’s technology in producing automotive steel products, which are lightweight, easy to form and has high strength, is being recognized.”

Tesla uses relatively heavy steel products in producing a car body in order to secure the safety of drivers, while using lightweight aluminum alloy materials in other parts. The company is said to be supplied aluminum alloy materials mainly from U.S.-based Alcoa Inc.


Source : businesskorea.co.kr