Integrated Die Casting
Recently, we learned from Wencan Co., Ltd., Guangdong Hongtu and other companies that with the rapid increase in new energy vehicles, integrated die casting has attracted much attention, and many listed companies have accelerated their deployment. According to industry insiders, the integrated die casting market space will increase rapidly, and the domestic integrated die casting market space is expected to reach more than 30 billion RMB by 2025.
Lightweight is the development trend.
Tesla leads the transformation of integrated die casting technology. In September 2020, Tesla announced that Model Y will use integrated die casting technology. One-time die casting can reduce 79 parts, weights by 30%, and manufacturing costs by 40%. Industry insiders say that using integrated die casting technology to reduce the number of parts can reduce weights. Lightweight is the development trend of the new energy vehicle industry. For the same mileage, the lighter the body is, the less electricity is required. In addition, integrated die casting can also save costs, improve efficiency and shorten the supply chain. Following Tesla, new car-making forces such as NextEV and Xiaopeng Motors, as well as traditional car companies such as Changan Automobile, Volkswagen, and Volvo have begun to deploy integrated die casting technology.
In October 2021, NextEV announced that they have successfully verified the development of heat-free materials that can be used to manufacture large die casting parts. The new materials will be applied to NextEV's second-generation platform models. In addition to the conventional workshop, Xiaopeng Motors Wuhan Plant has also provided the integrated die casting process workshop, and will introduce super-large die casting islands and automated production lines.
Changan Automobile stated that it plans to invest in the construction of a new factory in the Innovation Economic Corridor of Yubei District, Chongqing City. It is expected that after completion in 2024, a comprehensive production capacity of new energy vehicles with an annual output of 280,000 sets will be formed. The new factory will be able to meet the needs of the application of new processes and technologies such as aluminum alloys and integrated casting.
Tianfeng Securities estimates that the domestic integrated die casting market space will reach more than 30 billion RMB by 2025, and the compound annual growth rate from 2022 to 2025 will reach 238%.
A few listed companies accelerating the deployment of integrated die casting technology
Wencan Co., Ltd. said that the company has successfully trial-produced several integrated die-cast products, including half-piece rear floor, integrated rear floor, front cabin and upper body integrated large castings, and will deliver samples with small batches in the future. The company has already received orders for high-pressure die casting products from customers in North America.
According to industry insiders, the profit threshold of integrated die casting is relatively high. The cost of traditional die casting molds does not exceed 4 million RMB, while the cost of super-large die casting molds is generally more than 10 million RMB. A relevant person from a die casting company in A-share told reporters that a major difficulty in the manufacture of integrated die casting molds lies in the investment of equipment. The price of the die-cast machine is generally high, and it needs to be customized for different models. In addition, the ultra-vacuum die casting environment requires technology and experience.
Lightweight is the development trend.
Tesla leads the transformation of integrated die casting technology. In September 2020, Tesla announced that Model Y will use integrated die casting technology. One-time die casting can reduce 79 parts, weights by 30%, and manufacturing costs by 40%. Industry insiders say that using integrated die casting technology to reduce the number of parts can reduce weights. Lightweight is the development trend of the new energy vehicle industry. For the same mileage, the lighter the body is, the less electricity is required. In addition, integrated die casting can also save costs, improve efficiency and shorten the supply chain. Following Tesla, new car-making forces such as NextEV and Xiaopeng Motors, as well as traditional car companies such as Changan Automobile, Volkswagen, and Volvo have begun to deploy integrated die casting technology.
In October 2021, NextEV announced that they have successfully verified the development of heat-free materials that can be used to manufacture large die casting parts. The new materials will be applied to NextEV's second-generation platform models. In addition to the conventional workshop, Xiaopeng Motors Wuhan Plant has also provided the integrated die casting process workshop, and will introduce super-large die casting islands and automated production lines.
Changan Automobile stated that it plans to invest in the construction of a new factory in the Innovation Economic Corridor of Yubei District, Chongqing City. It is expected that after completion in 2024, a comprehensive production capacity of new energy vehicles with an annual output of 280,000 sets will be formed. The new factory will be able to meet the needs of the application of new processes and technologies such as aluminum alloys and integrated casting.
Tianfeng Securities estimates that the domestic integrated die casting market space will reach more than 30 billion RMB by 2025, and the compound annual growth rate from 2022 to 2025 will reach 238%.
A few listed companies accelerating the deployment of integrated die casting technology
Wencan Co., Ltd. said that the company has successfully trial-produced several integrated die-cast products, including half-piece rear floor, integrated rear floor, front cabin and upper body integrated large castings, and will deliver samples with small batches in the future. The company has already received orders for high-pressure die casting products from customers in North America.
According to industry insiders, the profit threshold of integrated die casting is relatively high. The cost of traditional die casting molds does not exceed 4 million RMB, while the cost of super-large die casting molds is generally more than 10 million RMB. A relevant person from a die casting company in A-share told reporters that a major difficulty in the manufacture of integrated die casting molds lies in the investment of equipment. The price of the die-cast machine is generally high, and it needs to be customized for different models. In addition, the ultra-vacuum die casting environment requires technology and experience.
