Dong Yang Piston will manufacture the heat dissipation module used in Kia EV6 GT launching next year, the company said on Monday.
The module is used to cool the power management semiconductor used in the inverter on EV6 GT.
The module will go through Hyundai Mobis before being supplied to Kia EV6 GT, a company spokesperson said.
Dong Yang Piston is aiming to have environmentally friendly components account for 15% of its sales in the long-term, they said.
Dong Yang Piston was founded in 1977 and is the largest manufacturer of engine piston in South Korea.
The company is seeing high sales from enclosures used in hydrogen fuel-cell cars. In the first quarter, the company recorded 1.457 billion won in sales from enclosures, a 74.28% increase from a year ago.
Enclosures protects the fuel cell stack from external shocks. Dong Yang Piston acquired the enclosure business from Wooshin in November, 2018. It supplies them to Hyundai Motor. It is an exclusive supplier of the component for Nexo and Elec City FCEV.
Dong Yang also recently won an order worth 70 billion won for new components that will be used in Hyundai’s future hydrogen fuel-cell cars.
A person familiar with the matter said Dong Yang had remaining orders worth 960 billion won next year for its pistons.
Last year, the company recorded 321.5 billion won in sales and 1.7 billion won in operating income, a drop of 11.87% and 90.81%, respectively from 2019. The firm saw demand drop from the COVID-19 pandemic.