Honda Motor group supplier G-Tekt will partner with global steelmaking giant ArcelorMittal on a cheaper alternative to casting auto chassis parts that promises to reduce the cost of making electric vehicles, Nikkei has learned.
G-Tekt will receive technology on license from Luxembourg-based ArcelorMittal that will be used to form EV body sections combining around five to 10 components into one large piece.
Unlike aluminium-based gigacasting — a process used by Tesla and a growing number of Chinese EV makers — the new technology will use less expensive steel. It could reduce the costs associated with vehicle body components by up to around 20% compared with gigacasting.
G-Tekt aims to begin using the new method after 2028 or later and will to propose it to Honda and other Japanese automakers. The move comes as Chinese rivals are gaining the upper hand in EV pricing.
BYD, China’s biggest EV manufacturer, has rolled out electric cars in its home market costing around $6,500. The price war has driven Tesla to lay off 10% of its global workforce. Spearheaded by Tesla, gigacasting has become representative of EV makers’ push for higher productivity. Toyota Motor is adopting its own version of gigacasting for making its next-generation EVs that will go on sale in 2026.
Meanwhile, Nissan Motor will use gigacasting for a number of EVs from fiscal 2027, aiming to shave about 10% off vehicle body material costs. Because Japanese carmakers have been slow to adopt gigacasting, some had considered playing catch-up by using steel, but struggled to perfect the technology.
Steel parts are coated with aluminium to prevent corrosion. That aluminium coating must be removed in places where the steel is joined together, otherwise the welds lack strength.
G-Tekt will use ArcelorMittal’s proprietary laser technology to join the steel components into a larger section. The initial costs of adopting the tech are expected to be low since G-Tekt will be able to use manufacturing equipment already in place.
Batteries and vehicle bodies are determining factors in the EV price war. The battery accounts for around 30% of the cost of an EV, while the materials going into vehicle bodies constitute over 10% of the total. G-Tekt’s production method could reduce the overall cost of an EV by several percent.
