Source: Finance Federation Author: Zeng Le, Yu Jiaxin, Wu Xuguang

Recently, along with$Tesla (TSLA.US)$It was rumored that a technological breakthrough had been achieved in integrated die-casting, and the technology immediately attracted market attention.

According to foreign media reports, through this breakthrough, Tesla can die-cast almost all of the complex underbody parts of an electric vehicle into a whole, rather than just die-casting about 400 parts. The “Science and Technology Innovation Board Daily” reporter tried to learn more relevant details from Tesla, but as of press time, no response had been received.

Zhang Xiaobing, executive president of Fangde Investment, told the “Science and Technology Innovation Board Daily” reporter that integrated die-casting technology is an advanced production process, and it can improve the efficiency and quality of automobile manufacturing.“Using this technology, it is possible to produce more accurate and stable automotive parts while reducing production costs. This is significant for Tesla. Based on this technology, Tesla can produce more cars and bring them to market in a shorter time.”

So, up to now, what is the development status of integrated domestic die-casting technology, what development problems are there, what is the layout of enterprises related to the industrial chain, and what impact will this technology have on the entire automobile manufacturing industry?

The integrated die-casting industry chain is getting better

Die-casting is the main processing form for automotive aluminum alloy parts. Judging from the essence of technology, integrated die casting is an aluminum alloy high pressure casting technology that has achieved major breakthroughs in component size and application areas. It has the advantages of high raw material utilization rate, labor cost savings, and high production efficiency.

In fact, as early as September 2020, Tesla CEO Elon Musk announced for the first time that integrated die-casting technology would be used in the production of Model Y rear body panels, and that 2-3 large-scale die-casting parts would gradually be used to replace more than 370 structural parts of the entire body floor.

At the time, Musk said that the Tesla Model Y would use an integrated die-cast rear bottom plate assembly, which could reduce the weight of the lower body assembly by 30% and the manufacturing cost by 40%.

Under this technological trend, the integrated die-casting industry chain is getting better and better, and many enterprises are making related layouts in this industrial chain.Currently, from the perspective of participants in the integrated die-casting industry chain, it involves upstream die-casting equipment, material manufacturers, and mold manufacturers; midstream die-casting suppliers; and downstream car companies.

Among them, in the upstream part of the integrated die-casting industry chain, it involves manufacturers of recycled aluminum alloys, lightweight automotive products, and new materials$Lizhong Sitong Light Alloys Group (300428.SZ)$, mainly engaged in the manufacture and sale of cold and hot chamber die casting machines and magnesium alloy die casting machines$LK TECH (00558.HK)$Other listed companies; midstream links include$Wencan Group (603348.SH)$,$Ningbo Tuopu Group (601689.SH)$,$Guangdong Hongtu Technology (002101.SZ)$,$Chongqing Millison Technologies Inc. (301307.SZ)$Other listed companies; the downstream link covers Tesla,$NIO Inc (NIO.US)$,$Li Auto (LI.US)$,$XPeng (XPEV.US)$Car companies such as, Jikrypton, etc.

Taking the following tour as an example, Li Shuaihua's team of China Post Securities analyzed that at present, there are two main business models for car companies to produce integrated die-cast models:The first is the self-development model, where car companies directly purchase materials such as die-casting machines, molds, and materials, and build their own factories to produce die-casting parts. This model uses Tesla,$Volvo AB Unsponsored ADR Class B (VLVLY.US)$Others are representative; the second is a procurement model, where car companies purchase die-casting parts from die-casting manufacturers, die-casting manufacturers purchase related materials, produce die-casting parts, and then deliver them to car companies. This model is based on NIO and idealThe like are representatives.

Zhang Xiaobing, executive president of Kefangde Investment, told the “Science and Technology Innovation Board Daily” reporter, “As integrated die-casting technology continues to develop, it will have an impact on the entire NEV industry. First, it will improve the manufacturing efficiency and production quality of new energy vehicles; second, it will drive the development of related industrial chains, including automotive parts, materials, metal processing, etc.; finally, the popularization and application of integrated die-casting technology will also promote technological upgrading and industrial structure optimization in the NEV industry, thus promoting the transformation and upgrading of China's automobile industry.”

Development status of the integrated die-casting industry chain

In order to better understand the current development status of all links in the integrated die-casting industry chain, the “Science and Technology Innovation Board Daily” reporter called the securities departments of a number of enterprises related to the industry chain as investors.

Among them,$Rayhoo Motor Dies (002997.SZ)$A director and secretary told the “Science and Technology Innovation Board Daily” reporter that its subsidiary, Wuhu Ruihu Automobile Lightweight Technology Co., Ltd. (hereinafter: Ruihu Lightweight), involves integrated die-casting technology for its lightweight parts products. “Some products have been designated by Chery and other customers. Currently, they are being developed and prepared for production, but they have not yet been put into mass production.”

Previously, in January 2022, Ruihu Mold established a subsidiary, Ruihu Lightweight, and expanded its business scope to include aluminum die castings and integrated die castings.

Currently, automobile lightweighting has become one of the main directions for the future development of the automotive industry. With the development of lightweight automobiles, aluminum alloy bodies have become a trend.

$Shanghai Yongmaotai Automotive Technology (605208.SH)$As a supplier of die-cast aluminum alloy materials, it has now formed a business pattern with “aluminum alloy+auto parts” as the main business and integrated upstream and downstream development.

Director and Secretary of Yongmaotai told the “Science and Technology Innovation Board Daily” reporter that currently the company can provide core materials for integrated die-casting heat-free treatment. “Currently, the company is mainly involved in auto parts products such as rear bottom panels. It is undergoing preliminary testing and verification with car companies such as Changan and Chery that are preparing to do integrated die-casting, but it has not yet carried out mass production or sales.”

Also, according to the 2023 semi-annual report, Yongmaotai has initiated an integrated die-casting project and is currently carrying out plant design and equipment procurement. At that time, 1-2 large-scale equipment will be invested, and production is expected next year. At the same time, Yongmaotai and downstream customers such as Pierburg are cooperating to develop a heat-free aluminum alloy material that can be used for large-scale integrated die casting. “Currently, the company is participating in integrated die-casting tests by various car companies to promote the large-scale application of heat-free aluminum alloys treated by the company.”

As a supplier of heat-free treatment alloy materials, a relevant person from Lizhong Group's securities department told the “Science and Technology Innovation Board Daily” reporter, “(We) are in touch with new energy vehicle companies with integrated die-casting layouts. At the same time, some car companies will choose their own integrated die-casting layout. Among these, there is no shortage of traditional car companies.”

Guangdong Hongtu mainly designs and manufactures precision aluminum alloy die castings. A relevant person from the company's securities department told the “Science and Technology Innovation Board Daily” reporter, “Tesla is one of our customers, but since the two parties have a confidentiality agreement, it is not convenient to disclose the details.”

Mainly engaged in R&D, production and sales of automotive aluminum alloy precision die castings$IKD Co., Ltd. (600933.SH)$, founded in December 2003, formerly known as Ningbo Unite Die Casting Co., Ltd.A relevant person from the Equity Department told the “Science and Technology Innovation Board Daily” reporter, “Currently, the company has an inter-supply relationship with Tesla.”

The “Science and Technology Innovation Board Daily” reporter noticed that at present, iCody's products are gradually expanding to medium to large items. “Lightweighting has become an irreversible market trend, and as a result, we have undergone a rapid transformation and made new changes in product categories according to customer needs.”

A relevant person from the Ikodi Securities Department mentioned above said that the company has expanded its integrated die-casting layout through the issuance of convertible bonds and overseas deployment. “Currently, it has been less than a year since we officially developed large products, and we have only been fully mass-producing them since the second quarter of this year. Currently climbing the slope is fast, but high-tonnage die-casting machines still require run-in between people, machines, and materials.”

$SuZhou ChunXing Precision Mechanical (002547.SZ)$As a Tesla supplier, he once stated on the investor interactive platform that automotive integrated die casting is an important direction for the company's future development, and that it will promote this project in line with market conditions.“The latest developments in the company's subsequent related products or business shall be subject to the company's disclosure announcement.” That's what Chunxing Seiko's executive secretary said.

Behind the “popularity” of integrated die-casting technology

“Currently, with advantages such as reducing operating costs and improving production efficiency, integrated die-casting technology may accelerate its market sinking. The relevant penetration rate is rising rapidly, and the market size is expected to gradually expand.” Some people in the automotive industry gave an analysis to the “Science and Technology Innovation Board Daily” reporter.

Fang Jing, an analyst at Minsheng Securities, believes that with the maturity of the integrated die-casting process, integrated die-casting products are expected to expand from rear floor products to related parts such as front cabins, midsole plates, and battery trays.

However, it should be noted that while integrated die-casting technology is “hot”, there are still some problems to be solved.

Among them, with regard to the development of the current integrated die-casting industry chain,Zhang Xiaobing, executive president of Kefangde Investment, analyzed to the “Science and Technology Innovation Board Daily” reporter that domestic integrated die-casting technology is developing relatively rapidly and currently has a certain strength and scale. “However, there are still some difficulties in the development of integrated die-casting technology in China, such as high technical requirements and high R&D costs. Furthermore, there is still a certain gap with foreign manufacturers in terms of basic materials, production technology, etc., and it is necessary to strengthen innovative research and development and investment in these areas.”

The “Science and Technology Innovation Board Daily” reporter noticed that some participants in the integrated die-casting industry chain are also quite cautious when laying out related businesses.

Among these,A relevant person from an integrated die-casting industry chain enterprise, who did not wish to be named, told the “Science and Technology Innovation Board Daily” reporter, “Compared with fuel vehicles, new energy vehicles are iterating at a rapid pace. Currently, the industry actually uses integrated die-casting production lines, but in fact, the scale is not particularly large. At the same time, since auto parts are non-standard parts, basically every customer has customized models, so it is necessary to switch between non-standard products corresponding to different customers. However, in the process of switching, it will be a waste of time and operating costs.”

The person in the industry chain mentioned above further explained, “Therefore, we will still carefully consider the relevant layout in the future. On the one hand, it depends on whether high-quality customers have demand in this area; on the other hand, only when there is quantity can there be a price; it must be based on a 'volume' basis to better achieve profit.Therefore, we will consider continued investment in the future, but it won't go very fast. We will choose to work steadily to carry out continuous verification, and then lay out some new investment.”

Another relevant practitioner in the automotive integrated die-casting field told the “Science and Technology Innovation Board Daily” reporter, “Integrated die-casting technology can indeed reduce a lot of costs for car companies, and its advantages are quite remarkable. However, in the early stages of layout, because many high-tonnage die-casting machines are required, the cost may be relatively high. However, if the application of technology throughout the industrial chain becomes more mature in the future, the corresponding costs will also drop.”

edit/lambor