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29 MARCH 2018 AL CIRCLE

Aluminium battles with steel over electric vehicle market

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

There was a slight drift in the use of metal when the electric carmaker Tesla Inc. decided to use steel instead of aluminium in its first mass-market model last summer.

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Aluminium has always been the key metal to redress the weights of batteries and increase consumer acceptance for electric vehicles. However in the recent time, in order to invade a bigger market, the battery-powered car maker invited a little change in the use of metals and embraced some technological developments in batteries and components, due to which, the price of Tesla's mass-market orientated Model 3 is around half of the £70,000 luxury Model S.

“Before the aim was 'Let's get the [electric vehicles] developed', now it's 'Let's get them developed at the right price point, said Mauro Erriquez, a partner at McKinsey & Company in Germany.

Amid a high demand for aluminium, steel has recently started making a small room for its own among gasoline vehicles, such as the Audi A8. This latest model has used a mix of aluminium, steel, magnesium and carbon fibre instead of using aluminium exclusively.

Therefore, the two popular metals aluminium and steel are increasingly combating each other, while there is a growing demand for battery-powered cars. Sales of electric and hybrid vehicles are due to surge to 30 per cent of the global auto market by 2030, according to metal consultants CRU, up from 4 per cent of the 86 million vehicles sold last year.

In China also, the sales of new energy vehicles are due to witness a 40 per cent growth this year to top 1 million vehicles, according to the China Association of Automobile Manufacturers. With this hike in demand for new energy vehicles, aluminium is still expected to benefit greatly from the electric vehicle revolution, since the both combustion engine block and transmission are typically made of aluminium, while the metal is used for housing the battery, as well as motor in electric vehicles, according to auto metals specialist AluMag in Germany. And, since there are years now before a wide use of pure electric vehicles due to a lack of adequate power charging networks, the use of aluminium is expected to grow in the interim.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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