Japan steelmaker JFE says Tesla-pioneered tech poses 'very big problem' for it

JFE Holdings

12/07/2023 09:08

By Miho Uranaka
       TOKYO, July 12 (Reuters) - Japan's second-biggest
steelmaker JFE Holdings Inc  5411.T  sees usage of technology
known as 'Gigacasting' as a risk to the company's business as it
could lead to reduction of steel usage, its President Koji
Kakigi told reporters. 
    Toyota Motor  7203.T , the world's top-selling automaker,
became the latest car producer planning to adopt 'Gigacasting' -
house-sized aluminium die-casting machines able to produce
aluminium parts far bigger than anything used before in auto
manufacturing.
    Pioneered by Tesla  TSLA.O , 'Gigacasting' allows for
production of larger and lighter parts - essential for electric
vehicles with heavy batteries - reducing costs, and attracting
interest from automobile giants including General Motors  GM.N 
and Hyundai Motor  005380.KS .  
    "The amount of crude steel used will obviously decrease,"
Kakigi told a press conference on Wednesday, calling
'Gigacasting' "a very big problem". 
    As aluminium is less strong compared to steel, iron might be
needed in the most vulnerable EV parts to increase safety, he
said. 
    JFE Holdings may consider investing into coking coal
essential for steelmaking, Kakigi added, expecting demand to
remain solid for such assets in the next couple of decades. 
    In May, JFE Holdings said it expected to post a 17% increase
in the current fiscal year's net profit to 190 billion yen ($1.4
billion) on stronger steel demand thanks to a recovery in the
auto sector.    
($1 = 139.3700 yen)

 (Reporting by Miho Uranaka; Writing by Katya Golubkova; Editing
by Muralikumar Anantharaman)
 ((ekaterina.golubkova@thomsonreuters.com;))