Global economic integration drives aluminium alloy die casting industry to flourish: technological innovation and market demand shape the future of the industry

In the context of the deep integration of the global economy and the transformation and upgrading of the manufacturing industry, aluminium alloy die casting products are becoming one of the core materials to promote the process of industrial modernisation by virtue of their lightweight, high strength and environmentally friendly recyclable characteristics. From automobile manufacturing to aerospace, from communication equipment to new energy field, the wide application of aluminium alloy die casting not only reshape the industrial chain pattern, but also become an important engine of global economic development of high quality.

I. Market demand continues to rise, new energy vehicles become the core driving force

In recent years, the global aluminium alloy die casting market scale shows explosive growth. Data show that in 2022, China's aluminium alloy die casting demand amounted to 4.4778 million tons, the market scale exceeded 1998.01 billion yuan, an increase of 9.89%.24 This growth is mainly due to the rapid expansion of new energy automobile industry. Automotive lightweight demand to promote aluminium alloy die casting in the body structure, battery tray and other key components in the penetration rate increased significantly, the current automotive industry use has accounted for more than 80%4.

At the same time, international automobile enterprises such as BMW, Mercedes-Benz on low carbon aluminium mandatory requirements (carbon emissions <8 tons of CO₂ / ton), gave birth to the ‘green premium’ market, and further stimulate the demand for high-quality aluminium alloy die casting technology innovation3.

Second, China leads the global production capacity, technological breakthroughs to enhance international competitiveness

China has become the core base of global aluminium alloy die casting production by virtue of abundant aluminium resources, perfect industrial chain and cost advantages. 2023, China's aluminium alloy die casting production reached 7.95 million tons, accounting for nearly 40% of the global total production.4 Recently, Northeast Light Alloy Company (NLAC) has successfully overcome the seven series of aluminium alloys, large-size ingot (420mm × 1620mm) casting technology, the molding rate increased from 20% to 75%, marking a breakthrough in high-quality aluminium alloy die casting technology. 20% to 75%, marking China's high-precision, large-size die castings in the field of ‘from 0 to 1’ breakthrough7.

In addition, the head enterprises such as Guangdong Hongtu, Wencan Group, etc. through hedging, material substitution (such as aluminium-magnesium composite technology) and intelligent production (AI defect detection system) to achieve cost reduction and increase efficiency, the gross profit margin, although affected by fluctuations in aluminium prices, but still remained at more than 18%, showing a strong market resilience35 .

Third, the global economic fluctuations under the challenges and opportunities

Aluminium alloy die casting industry also faces multiple challenges:

Raw material price fluctuations: 2024 LME aluminium price once exceeded 2800 USD / ton, resulting in enterprise profit space compression. Every 10% increase in aluminium price, the net profit of die-casting enterprises may be reduced by 3%-5%3.

Technology upgrading pressure: new energy vehicles on die casting precision, thin-walled demand, forcing enterprises to accelerate process innovation. For example, Tesla suppliers have achieved a 0.15 yuan reduction in the cost of a single piece by optimising the wall thickness tolerance (±0.15mm) and improving the proportion of scrap aluminium recycling (45%)3.

However, global supply chain reconfiguration has also brought new opportunities for the industry. In order to reduce geographic risks, North American and European automakers have accelerated decentralised procurement to regions outside of China, pushing Chinese companies to lay out their overseas production capacity. For example, Toppan's North American plant has reduced costs by sourcing low-carbon aluminium from Canada, achieving a regional cost advantage despite the 25% tariff3.

Future Outlook: A New Industry Ecology of Green and Intelligent Parallelism

Over the next three years, aluminium price volatility is expected to rise to 35%, and competition in the industry will become more intense.3 Against this backdrop, two major trends will dominate the industry:

Green transformation: the spread of low-carbon aluminium and recycled aluminium technologies will reshape the supply chain to meet the demands of global carbon tariff policies.

Intelligent production: the combination of integrated die casting processes (such as 12,000 tonne die casting machines) and digital management systems will push production efficiency up by more than 30%35.

China's aluminium alloy die casting enterprises are consolidating their ‘world factory’ status through technology iteration and global layout. It is expected that by 2029, China's market size will exceed 300 billion yuan, becoming the global curator of die casting innovation12.

Conclusion

In the global economic integration and technological innovation under the double driving force, aluminium alloy die casting industry is not only the epitome of manufacturing upgrade, but also countries compete for high-end manufacturing strategic high ground. Chinese enterprises with technological innovation and market acumen, is leading the industry towards a new era of high efficiency, green, intelligent, for the sustainable development of the global economy to inject strong power.