The Japanese multinational automotive manufacturer Toyota's pursuit of closing the gap with Tesla in the emerging era of electric vehicles is unfolding on the traditional battleground of the automotive industry, the assembly line. It is a manufacturing process in which a combination of machines assembles the finished item.
As reported by a British daily business newspaper, Toyota has asserted technological advancements in solid-state batteries and recently made a substantial $8 billion investment in the U.S. electric vehicle market in an effort to convince investors of its capacity to rival Tesla. However, the global auto giant faces intense competition from Tesla in the manufacturing realm, where the world's most valuable automaker spearheads a fundamental transformation in the automotive production process. Elon Musk, the CEO of Tesla, contends that traditional assembly methods must be revamped for electric vehicles, streamlining and expediting the manufacturing process by reducing the number of suppliers and vehicle models.
According to a press statement by CRU Group, by 2030, the demand for aluminium in the electric vehicle (EV) industry is projected to reach almost ten million tonnes, marking a ten-fold increase compared to the levels observed in 2017. The utilization of primary aluminium, especially in the form of extrusions and rolled products, will be significantly higher in electric vehicles than what we currently see in traditional internal combustion engine vehicles. It is estimated that aluminium usage in electric vehicles will experience a substantial increase, ranging from 15 per cent to 27 per cent.
In particular, plug-in hybrid and fully battery-powered electric vehicles are expected to incorporate 25-27 per cent more aluminium in their construction compared to the typical internal combustion engine (ICE) cars of today. This assessment is based on a baseline of 160 kilograms of aluminium content per vehicle in traditional internal combustion engines.
In the automotive industry, some analysts and leaders anticipate Tesla's innovative manufacturing process, referred to as "gigacasting" by Elon Musk, may establish a fresh standard for vehicle production, potentially surpassing the renowned Toyota Production System known for its just-in-time manufacturing efficiency.
As said by a veteran automotive analyst in the past, Toyota's way of building cars was considered the standard, but what Tesla is proposing is likely to become the standard for manufacturing EVs in the foreseeable future, resulting in Japan's car manufacturing being profoundly affected.
Toyota's recently appointed president, Koji Sato, faces the challenge of demonstrating that the company's highly efficient production methods, capable of manufacturing millions of vehicles annually in various configurations, will continue to be a valuable asset in the era of electric vehicles.
The American multinational automotive Tesla adopted gigacasting as a manufacturing method for its Model Y sport utility vehicle starting in 2020. Traditionally, car bodies have been assembled by welding or stamping together numerous components. In contrast, gigacasting, or megacasting, utilizes casting machines to inject molten metal into moulds with high pressure, resulting in the creation of large aluminium body parts, including the entire undercarriage of a vehicle. While the automotive industry has long employed casting for smaller aluminium parts, Musk's vision of using this technology to produce entire car bodies has compelled other automakers to explore grander possibilities.
One solution to the design challenges posed by the increasingly heavy auto batteries is gigacasting with aluminium, which is altering the way cars are being designed.
As stated by a Toyko-based analyst of an American multinational investment bank and financial services company, advancements in battery technology are influencing the development of gigacasting technology, which is essential for producing lighter vehicles to enhance their driving range. Although aluminium is more expensive than steel, when all factors are considered, the overall cost structure should remain relatively stable or even show a slight improvement. However, when it comes to performance, it is evident that gigacasting technology offers significant advantages.
Toyota is actively pursuing a significant increase in electric vehicle (EV) production and has shown interest in adopting techniques employed by Tesla and Chinese EV manufacturers. However, during a series of plant tours in September, Toyota's executives acknowledged that there is valuable knowledge to gain from these companies. Despite this, Toyota has clarified that it does not plan to embrace Tesla's gigacasting approach wholeheartedly. Instead, it intends to leverage its extensive decades of experience to develop its unique approach to EV manufacturing.
The Japanese carmaker plans to reduce processes and plant investment by half by implementing gigacasting and new assembly lines. However, company executives express caution regarding producing vehicles with a single moulded underbody. Currently, replacing a damaged part in a vehicle is a cost-effective and straightforward process. If the entire underside were to require replacement, it could result in a substantial increase in the number of vehicles considered too expensive to repair.
For a deeper understanding of aluminium's role in the automotive industry, consider exploring AL Circle's industry-specific report titled "The Future of Aluminium in Transportation Sector: An industry analysis with forecast to 2027." This report provides valuable insights into the impact of aluminium on the transportation sector.
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