South Korean components manufacturer Daedong Gear, a unit of the local Daedong Group, said it had signed a major contract worth KRW184bn (US$138m) to supply drivetrain components for Hyundai Motor Company electric vehicles (EVs).

Daedong is a medium size, specialist manufacturer of transmission parts including gears and transmission shafts, located in Sacheon on South Korea’s south coast.

It was originally established as a manufacturer of parts for agricultural machinery before it began producing transmission parts for GM Korea (GMDAT) and KG Mobility (Ssangyong) in the 1990s.

According to local reports, Daedong has agreed to supply output shaft sub assemblies, which transfer power from the drivetrain to the wheels, between 2025 and 2036 for Hyundai’s new EV platform.

Daedong said it would use the latest design and precision grinding technology to help reduce noise and vibration in Hyundai’s new generation EVs.

Hyundai Motor said it aimed to produce 2m battery electric vehicles (BEVs) per year by 2030 while sister company Kia Corporation is targeting output of 1.6m.

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By GlobalData