Giga Press: Gigacasting is streamlining auto production

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  Quantumrun Foresight
• November 18, 2024

Insight summary

Giga Press technology is reshaping how electric vehicles (EVs) are made, allowing manufacturers to produce large components faster and at lower costs. This trend could make EVs more affordable while reducing maintenance costs due to fewer parts. However, as automakers streamline production, there may be fewer jobs in traditional assembly lines, raising concerns about automation's impact on labor.

Giga Press context

The Giga Press is a massive aluminum die-casting machine that has transformed vehicle manufacturing, particularly in the EV sector. Introduced by Tesla in 2020, the Giga Press allows manufacturers to produce large structural components with minimal parts, enhancing production efficiency. Tesla’s Model Y, for instance, saw a significant reduction in its assembly complexity as over 70 components were consolidated into two or three large castings. This technology, pioneered by IDRA Group, has gained traction in the automotive industry, with General Motors, Toyota, Hyundai, and Polestar showing interest in adopting it to improve their production processes. According to IDRA’s general manager, Riccardo Ferrario, it is estimated that by 2035, 80 percent of automakers will use Giga Presses for their EV production.

Weighing thousands of tons and exerting tens of thousands of kilonewtons of clamping force, the Giga Press injects molten aluminum into molds to produce large parts, such as vehicle undercarriages. The process streamlines the assembly of EVs, reducing production time and the need for labor-intensive robotic assembly lines. Tesla has already seen significant benefits, producing the Model Y in just 10 hours using this technology and eliminating the need for 600 robots. Tesla also claims that its manufacturing costs for the Model Y have been reduced by 40 percent, providing a competitive edge in the EV market, where cost reduction is crucial due to the high expense of battery production.

Advancements such as electromagnetic (EM) pumps have been developed to improve the Giga Press process further. These pumps replace traditional ladling methods, reducing defects such as bubbles and porosity. EM pumps, widely used alongside IDRA's Giga Presses, enhance the precision of the metal filling process by dynamically adjusting the flow of molten aluminum every 10 milliseconds. This innovation ensures that parts are produced with higher quality and fewer errors, which is particularly important in gigacasting since fewer parts are used in the assembly process. 

Disruptive impact

As the price of EVs drops due to more efficient manufacturing processes, consumers may find that owning an EV becomes more affordable compared to traditional gas-powered cars. This could lead to higher adoption rates, reducing overall fuel expenses for families and lowering their carbon footprints. Additionally, with fewer components involved in vehicle assembly, repair and maintenance costs may decrease as well. However, there may be challenges, such as a potential loss of jobs in industries that rely on manual labor for vehicle production.

For businesses, Giga Press technology may lead to significant shifts in manufacturing strategies and supply chains. Automakers could benefit from reduced production times and cost savings, allowing them to invest more in research and development or sustainability efforts. Companies adopting this technology may also reconsider their relationships with suppliers, particularly those providing smaller vehicle parts since gigacasting replaces many components. Additionally, businesses investing in Giga Press machines may need to balance the cost of this advanced technology with the benefits of long-term savings.

Meanwhile, as more automakers adopt gigacasting, governments may need to revisit regulations regarding manufacturing standards, labor laws, and environmental impacts. Additionally, countries seeking to position themselves as leaders in the EV market might invest in research grants or incentives for manufacturers adopting this technology. However, governments may also need to address the consequences of job displacement caused by automation in vehicle assembly. In regions where manufacturing jobs are a significant part of the economy, workforce retraining programs may be essential to support those transitioning into new roles.

Implications of Giga Press

Wider implications of Giga Press may include: 

• Increased demand for new technical skills in managing and operating Giga Press machines, leading to a shift in education and training programs.
• Automakers shifting to fewer suppliers due to reduced parts in vehicle production, causing a consolidation of smaller suppliers in the industry.
• Lighter vehicles increasing fuel efficiency, resulting in governments adjusting emissions standards and fuel tax policies.
• Increased competition between automakers to adopt gigacasting, encouraging faster innovation in electric vehicle design and battery technologies.
• Changes in urban infrastructure as the growth of affordable EVs may encourage cities to invest in more charging stations and EV-friendly policies.
• Labor unions advocating for new regulations to protect workers as automation through gigacasting reduces the need for traditional assembly jobs.
• The expansion of gigacasting in developing countries creating new opportunities for international partnerships and investments in advanced manufacturing.
• Automakers offering more competitively priced vehicles, increasing access to personal transportation for lower-income households.

Questions to consider

• How might the shift to fewer vehicle components affect the way you maintain or repair your car in the future?
• What changes might you see in your transportation options if EVs become more affordable due to gigacasting?