Aluminium could replace steel as metal of choice to produce electric vehicles. Despite being expensive than steel, EV makers are increasingly depending on aluminium to make electric car parts like chassis, batteries among others. A faster paced energy transition through a speedier shift to electric vehicles has created a new, substantial demand stream for aluminium and major opportunities for auto supply chain firms flying under investors' radar. Previously shunned in favour of cheaper steel, aluminium consumption in electric vehicles is expected to accelerate over coming years as Covid-19 hastens the move to a green economic recovery.
ADVANTAGES OF ALUMINIUM
Significantly lighter than steel, aluminium is now the metal of choice in a range of parts - from the chassis, structural components such as the shock tower and internal panels to housing for motors and the batteries that power electric cars. Aluminium producers such as Rusal, Rio Tinto and Glencore with access to large amounts of metal are set to benefit.
Aluminium prices are typically about three times that of steel. But the industry is prepared to accept the price difference due to the sheer scale of potential sales, an executive involved in the auto supply chain said.
Aluminium weighs about one-third of steel per cubic foot, enabling "lightweighting" of electric vehicles and superior performance in terms of the distance travelled before batteries need to be recharged.
Aluminium better protects passengers and the structure of the car in a crash situation, the Crash Management System absorbs the energy created.
ALUMINIUM - CHOICE OF AUTOMAKERS
As consumer pressures and environmental challenges increase—so too does the use of automotive aluminum. This demand is accelerating as low weight, high-strength aluminum is helping automakers adapt to new mobility trends, and we’re bullish on the growth potential of the metal in the fast-emerging electric vehicle segment. Automotive aluminum market penetration enjoyed year over year growth the past five decades and that expansion is expected to continue as far down the road as can be projected today. As electric vehicles become more widely available, greater aluminum use to extend range and help offset battery weight and cost will ensure consumers will still be able to choose high performing cars and trucks that are safe, fun to drive and better for the protection of the environment.
As electrification grows, the analysis confirms demand for aluminum extrusions and high-pressure aluminum diecast parts will grow due to increased use in applications like battery housings, motor housings and body structural components. Aluminum also continues to drive vehicle safety, with extrusions for crash management system (CMS) applications projected to increase 10% from 2016-2022.
Automakers continue to favor aluminum in an ever-changing industry climate as demonstrated by recent product launches, including the Ford Bronco and Jeep Gladiator, which both feature intensive use of aluminum closures and structural components. As the automotive aluminum sector thrives it remains vital to the nation’s manufacturing base and a healthy U.S. economy. The aluminum industry invested or committed more than $3 billion to ensure increased automotive capacity in the U.S. since 2013, and the industry is prepared to continue such investments in domestic manufacturing jobs as demand continues to grow.
December 06, 2021