[1/2] The logo of car manufacturer Tesla is seen at a dealership in London, Britain, May 14, 2021. Portal/Matthew Childs/File Photo
June 14 (Portal) – Toyota Motor (7203.T) said this week that it will adopt a technology developed by Tesla (TSLA.O) called “Gigacasting” as part of a strategy by the Japanese automaker to improve performance – and to reduce the performance costs – of future electric vehicles (EVs).
Toyota isn’t the only one following Tesla’s breakthrough.
Here’s a look at Gigacasting and how innovation is forcing automakers to scramble to keep up with Tesla:
WHAT IS GIGACASTING?
The Giga Press is an aluminum die-casting machine that Tesla uses in its factories in the US, China and Germany. The house-sized machines are capable of producing aluminum parts far larger than anything previously used in automotive manufacturing.
The “Giga” in the name is a nod to Tesla’s convention of calling its factories “Gigafactories.” Other automakers are now calling them “mega presses,” which can also refer to smaller but still massive machines.
In operation, the press takes a shot of molten aluminum of 80 kg (176 lb) or more into a mold where it is formed into one part, released and then rapidly cooled.
Tesla has developed an aluminum alloy that also makes it possible to eliminate the heat treatment traditionally used to increase the strength of the casting.
WHAT HAS THE PAYOUT?
Typically, more than a hundred individually stamped pieces of metal were welded together to make an automobile body.
According to analysts, fewer parts, lower costs and a simplified production line have contributed to Tesla’s industry-leading profitability.
According to the company, by using a single component in the rear of the Model Y — its best-selling model — Tesla was able to reduce associated costs by 40%.
According to Elon Musk, Tesla was able to remove 600 robots from assembly on the Model 3 by using a single part on the front and rear of the vehicle.
It can also reduce a vehicle’s weight – an important consideration in electric vehicles, where the battery pack alone can weigh in excess of 700 kg. And it has the potential to reduce a facility’s waste and greenhouse gas emissions.
Toyota said it expects the use of die-cast aluminum will eliminate dozens of sheet metal parts from assembly and reduce waste.
WHO MAKES THESE MACHINES?
Tesla sources its presses from Italy-based IDRA, which has been a unit of China’s LK Industries since 2008.
IDRA and LK’s competitors include Bühler Group in Europe, Ube (4208.T) and Shibaura Machine (6104.T) in Japan, and Yizumi (300415.SZ) and Haitian (1882.HK) in China.
According to analysis by AlixPartners, the global aluminum die casting market was worth nearly $73 billion last year and is expected to surpass $126 billion by 2032.
Who is tracking it?
In addition to Toyota, General Motors (GM.N), Hyundai Motor (005380.KS) and subsidiaries of China’s Geely – Volvo Cars, Polestar and Zeekr – are also using or planning to use the technology.
Zeekr has started using solid die-cast aluminum parts for a multi-purpose transporter it manufactures for sale in China and has said it will roll out the technology to other models as well.
Volvo announced last year that it would invest more than $900 million to upgrade its plant near Gothenburg, Sweden, with Megapress technology.
WHAT’S THE CATCH?
The cost is one.
Tesla gets the majority of its sales from just two models: the Model 3 and Model Y. High sales volumes on just two platforms make it easier to justify investing in new production technology. Other EV startups also have this advantage.
For long-established automakers with more complicated product lines and factory machinery that has already paid for itself, the decision to invest tens of millions of dollars in new casting technology can be a tougher decision, analysts say.
Cars with body panels cast in separate pieces may also be more difficult or expensive to repair after an accident. This could increase operating costs for electric vehicles.
Already, insurance companies write off low-mileage EVs if they have damaged batteries, as there is often no way to repair even slightly damaged battery packs.
Reporting by Kevin Krolicki; Edited by Christopher Cushing
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