To fight China BEVs on cost, Honda supplier seeks steel-based alternatives to Gigacasting

G-Tekt, a supplier to the Honda Motor group, has announced that it has entered into a licensing agreement with global steel giant ArcelorMittal on a cost-effective solution for manufacturing auto chassis components, potentially driving down the production cost of battery electric vehicles (BEVs).

Under the partnership, G-Tekt will acquire licensing for cutting-edge technology from ArcelorMittal, headquartered in Luxembourg. This technology aims to streamline the formation of EV body sections by consolidating multiple components into a single, larger piece, comprising approximately five to ten elements.

In contrast to the prevalent use of aluminium-based Gigacasting employed by Tesla and numerous Chinese EV manufacturers, the approach proposed by G-Tekt and ArcelorMittal will utilise more economical steel.

Projections suggest that this method could potentially slash the expenses associated with vehicle body components by up to roughly 20 percent compared to Gigacasting. G-Tekt anticipates implementing this method post-2028, with plans to propose its adoption to Honda and other Japanese carmakers.

Gigacasting, championed by Tesla, has become emblematic of BEV manufacturers' drive for enhanced productivity. Toyota Motor is set to adopt its version of Gigacasting for producing its next-generation EVs slated for launch in 2026. Similarly, Nissan Motor intends to incorporate Gigacasting into several EV models starting from fiscal 2027, with the aim of trimming vehicle body material costs by around 10 percent.

In the case of G-Tekt, the company plans to leverage ArcelorMittal's proprietary laser technology to integrate steel components into larger sections. The initial implementation costs are expected to be relatively modest, as existing manufacturing equipment can be repurposed for this purpose.

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