Explainer: Why are other automakers chasing Tesla's 'Gigacasting'?

UBE

14/06/2023 08:17

June 14 (Reuters) - Toyota Motor  7203.T  said this week
it will adopt a technology Tesla  TSLA.O  pioneered known as
"Gigacasting" as part of a strategy by the Japanese automaker to
improve the performance – and lower the cost – of future
electric vehicles (EVs).
    Toyota is not alone in following Tesla's breakthrough.
    Here's a look at Gigacasting and how the innovation is
forcing automakers to scramble to match Tesla:
    
    WHAT IS GIGACASTING?
    The Giga Press is an aluminium die-casting machine adopted
by Tesla at its factories in the U.S., China and Germany. The
house-sized machines are able to produce aluminium parts far
bigger than anything used before in auto manufacturing.
    The "giga" in the name is a nod to Tesla's convention of
calling its plants "Gigafactories". Other automakers have taken
to calling them "megapresses", which also can refer to smaller
but still massive machines.
    In operation, the press takes in a shot of molten aluminium
of 80 kg (176 lb) or more into a mould where it is formed into a
part, released and then quickly cooled.
    Tesla has developed an aluminium alloy that also allows it
to skip the heat treating traditionally used to increase the
strength of the cast part.
    
    WHAT'S THE PAYOFF?
    Typically more than a hundred individually stamped metal
parts have been welded together to make a car body.
    Fewer parts, lower costs and a simplified production line
have contributed to Tesla's industry-leading profitability,
analysts have said.
    For Tesla, the use of a single component in the rear of the
Model Y - its best-selling model - allowed it to cut related
costs by 40%, the company has said.
    In the Model 3, by using a single piece from the front and
rear of the vehicle, Tesla was able to remove 600 robots from
assembly, Elon Musk has said.
    It can also cut a vehicle's weight – an important
consideration for EVs where the battery pack alone can weigh
more than 700 kg. And it has the potential to reduce waste and
greenhouse emissions from a plant.
    Toyota said it expected that using aluminium die-casting
would 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.
    Competitors of IDRA and LK include Buhler Group in Europe,
Ube  4208.T  and Shibaura Machine  6104.T  in Japan, and Yizumi
 300415.SZ  and Haitian  1882.HK  in China.
    The global aluminium die-casting market was worth almost $73
billion last year and is projected to top $126 billion by 2032,
showed an AlixPartners analysis.
    
    WHO'S CHASING IT?
    In addition to Toyota, General Motors  GM.N , Hyundai Motor
 005380.KS  and affiliates of China's Geely – Volvo Cars,
Polestar and Zeekr - are using the technology or planning for
it.
    Zeekr has started using massive aluminium die casts for a
multi-purpose van it makes for sale in China and has said it
will introduce the technology for other models.
    Volvo said last year it would invest more than $900 million
to upgrade its plant near Gothenburg, Sweden, to include
megapress technology.
    
    WHAT'S THE CATCH?
    Cost is one.
    Tesla records most of its sales with just two models: the
Model 3 and Model Y. High sales volume on just two platforms
make it easier to justify the investment in new production
technology. Other EV startups also have that advantage.
    For legacy automakers with more complicated product lineups
and factory machinery that is already amortized, the decision to
invest tens of millions of dollars in new casting technology can
be a harder call, analysts have said.
    Cars with body sections cast into single pieces could also
be harder or more expensive to repair after an accident. That
could add to the cost of operation for EVs.
    Already insurance companies are writing off EVs with low
mileage if they have damaged batteries because there is often no
way to repair even slightly damaged battery packs.

 (Reporting by Kevin Krolicki; Editing by Christopher Cushing)
 ((kevin.krolicki@thomsonreuters.com; +813 6441 1800; Reuters
Messaging: kevin.krolicki.thomsonreuters.com@reuters.net))