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South Korea’s POSCO International has revealed part of a contract it signed with Rivian, an American electric-vehicle (EV) startup, along with its third quarter earnings.

POSCO International said it will supply half shafts used for EVs to RIVIAN for six years from 2022 to 2028, according to the company on Friday. Half shafts are a key component for EVs.

The contract, which is worth $124 million (150 billion won), is not large given that POSCO International records more than 20 trillion won in revenue a year on a consolidated basis. However, the deal is meaningful in that the company has expanded its half shaft business. POSCO International previously signed a contract to supply half shafts to Vietnam’s EV maker VinFast.

“POSCO International has various business divisions,” said an official at the company. “The contract worth 150 billion won is not small from the eco-friendly vehicle parts business’s perspective.” The source added that the company will continue to expand the eco-friendly vehicle business.

Rivian reportedly has about 150,000 pre-orders for its R1T all-electric pickup truck, which was launched in September. The company also plans to supply 100,000 electric vans to Amazon Logistics by 2025.

The EV is POSCO International’s future growth engine. The company also produces motor cores. It supplied motor cores to 268,000 vehicles in the third quarter of this year. POSCO International has invested 58.6 billion won to build a new production facility in China and will announce its plan to build a plant in the US in the first quarter of next year.

POSCO International plans to enter the EV powertrain module business in the future. Many companies are drawing attention to the business, with South Korea’s LG Electronics recently setting up a joint venture, LG Magna e-Powertrain, with Canada-based vehicle parts maker Magna International for producing EV components.

POSCO International posted consolidated revenue of 9.15 trillion won and operating profit of 148.5 billion won in the July-September period. (Reporting by Doung Yang)