The ring gear is the largest gear in the differential. It receives torque from the small pinion gear. This changes the direction of drive force by 90 degrees to turn the axles. The ratio between the teeth on the ring gear and the pinion gear determines the vehicle's final drive ratio.
Ring gears are hardened steel to handle extreme engine torque. If the backlash is set incorrectly, the teeth will slip and shear off. A chipped tooth will cause a rhythmic clunking sound that changes speed with the wheels.