New Energy Accelerates Lightweight Vehicle Development; Integrated Die-Casting As A Key Tool

What is Range Anxiety

In October 2020, the Energy-Saving and New Energy Vehicle Technology Roadmap 2.0, organized and compiled by the China Society of Automotive Engineers, was released, which put forward requirements for the fuel consumption per 100 kilometers of various types of vehicles. It is expected that in 2030, new energy vehicles in my country will account for 40% of the total sales, and the fuel consumption of passenger cars per 100 kilometers will reach 3.2L, responding to the "dual carbon" goal. From the perspective of fuel vehicles, the average fuel consumption of a car is positively correlated with the weight of the whole vehicle, and the lightweighting of the car has a positive role in reducing the fuel consumption of traditional vehicles. According to research, for every 10% reduction in the weight of the car, a maximum of 5-10% fuel savings can be achieved; for every 100 kg reduction in the curb weight of the car, the fuel consumption per 100 kilometers can be reduced by 0.3-0.6 liters.

In recent years, the penetration rate of new energy vehicles in my country has continued to rise, but "range anxiety" still limits consumers from purchasing new energy vehicles. Generally speaking, a traditional fuel vehicle can travel more than 500 kilometers after filling up with gas, while the range of most electric vehicles is around 300-500 kilometers, which still leaves a gap.

How to solve range anxiety

New energy vehicles can solve range anxiety in the following ways:

(1) Improve battery energy density. "Made in my country 2025" clearly defines the development plan for power lithium batteries: in 2020, the the battery energy density which made of battery alumunum case will reach 300Wh/kg; in 2025, the battery energy density will reach 400Wh/kg; in 2030, the the battery energy density which made of battery alumunum case will reach 500Wh/kg.

(2) Increase the number of the battery energy density which made of battery alumunum case and reduce weight. Compared with traditional energy vehicles, new energy vehicles are often 10% heavier than fuel vehicles due to their three-electric system. Increasing the number of battery packs can increase the range, but the total weight of the battery pack is 900 kg, accounting for 42.7% of the total vehicle mass. Therefore, it can be seen that one of the important ways to increase the range is to reduce the weight of the vehicle.

Lightweighting of automobiles is a major trend in the development of the automobile industry. The paths to achieving lightweighting mainly include materials, processes, and structures. Weight can be reduced in multiple parts, including power, body, chassis, interior and exterior trim.

According to the "China Automobile Lightweight Industry Development Trend Analysis and Investment Prospect Forecast Report (2023-2030)" released by Guanyan Report Network, at present, the lightweight directions of automobile companies include:

1. using aluminum alloy instead of steel in automobile chassis, power, body, battery box and other parts;

2. using plastic instead of steel for interior and exterior trims;

3. using integrated die-casting process. Lightweight manufacturing can be achieved in every link of automobile parts, and mainstream parts companies at home and abroad are committed to lightweight manufacturing.

what is key material for lightweight automobiles

Aluminum alloy is key material for lightweight automobiles.

Aluminum alloy is one of the best lightweight materials at this stage. Currently, many mainstream models use all-aluminum bodies, and most of the front and rear suspension materials are also made of aluminum alloy. The degree of aluminumization is getting higher and higher, and lightweight manufacturing is achieved to the greatest extent.

At present, the conversion rate of aluminum used in chassis, body, brake system, etc. is low. In the next ten years, the penetration rate of aluminum used in many major parts of automobiles will increase significantly. The "Energy Conservation and New Energy Technology Roadmap" of the Ministry of Industry and Information Technology proposes that the target of aluminum consumption per vehicle in my country in 2025/2030 is 250kg/vehicle and 350kg/vehicle. The aluminum alloy consumption per vehicle in 2030 is expected to double compared with 2021.

Integrated die casting is a cutting-edge technology for lightweighting, and first-mover companies will build high barriers.

Traditional automobile manufacturing consists of four major processes: stamping, welding, painting, and assembly. Among them, stamping is to press metal sheets into various components required for the car body, and then use welding or riveting to manufacture large aluminum parts. Integrated die-casting uses a large-tonnage die-casting machine to change stamping and welding into die-casting, combining the first two steps into one, highly integrating multiple separate and scattered parts, and directly casting large parts.

There are two business models for integrated die-casting. One is the self-developed model: the OEM directly purchases die-casting machines, materials, molds and other materials, and builds its own factory to produce die-castings. Representative car companies include Tesla, Xiaopeng and Volvo. The other is the procurement model: the OEM directly purchases die-castings from die-casting manufacturers, and the die-casting manufacturers purchase related materials and deliver the die-castings to the OEM after production. Representative car companies include Weilai and Ideal. In the long run, due to the high cost of self-built factories and production lines for OEMs, and the fact that car sales may become a suppressing factor on capacity utilization, the procurement model is expected to become the long-term mainstream.

From the perspective of the industrial chain, the upstream of the integrated die-casting industry chain is the die-casting machine, material and mold manufacturers, the midstream is the aluminum alloy die-casting plants and self-developed OEMs, and the downstream is the purchasing OEMs.

From the perspective of entry barriers, integrated die-casting also has relatively high technical barriers, which will magnify the first-mover advantage of manufacturers.