According to Reuters, Tesla's important supplier in the integrated casting field, Tooling& Equipment International (TEI) has recently been acquired by General Motors, which can improve GM's production and manufacturing efficiency and is seen by the industry as an opportunity to catch up with Tesla.
TEI is an American foundry company with mature technology and experience in sand casting technology, which is the key to Tesla's development of integrated casting technology.
Integrated die-casting refers to the integration of body components, which means that multiple individual scattered components in the original design are redesigned and highly integrated, and then formed in one step using a large die-casting machine, omitting the welding process, and directly obtaining a complete large part.
Due to the innovation of this production process, it can simplify the production process, improve production efficiency, and reduce body weight, effectively and significantly reducing production costs. Previously, Tesla stated that the cost of the car's rear floor assembly system was reduced by 40% after adopting an integrated die-casting method.
It is understood that TEI mainly uses 3D printing sand technology to produce low-pressure aluminum prototype castings. This technology can quickly create and modify industrial sand molds based on digital files, enabling cost-effective casting and adjustment.
According to a report from Tesla in September this year, Tesla is using 3D printers to produce molds using industrial sand, which can be adjusted without too much risk.
Since 2017, Tesla has maintained a cooperative relationship with TEI, covering the design of large-scale casting mold prototypes for multiple vehicle models, including Model Y, Model 3, Cybertruck pickup trucks, and Semi trucks.
General Motors also had a partnership with the company as early as 2021. In 2021, TEI mass-produced large-sized and lightweight structural components for Cadillac's limited edition luxury car Celestiq EV. The Celestiq rear longitudinal body and bottom plate castings produced by it have significantly reduced in size and weight, and have been awarded the annual casting title by the American Foundry Association.
Now, TEI has become a part of General Motors, and this transaction has enabled General Motors to acquire advanced casting technology. According to reports, the acquisition value is less than $100 million, and TEI will be integrated into General Motors' global manufacturing department while retaining its business entity.
After losing TEI as a key supplier, Tesla needs to rely more on other casting companies and may develop internal capabilities to reduce its dependence on external suppliers.
According to Reuters, citing insiders, Tesla is working hard to find new sand casting partners and will rely on other casting companies in the UK, Germany, and Japan. These companies will develop the molds required for Tesla's previously highly anticipated $25000 low-cost model. Recently, Tesla CEO Elon Musk confirmed that the car will also be manufactured in Germany.
General Motors' acquisition of TEI represents ongoing competition among automakers in integrated die-casting technology. Currently, several automotive giants in the industry are catching up with Tesla in integrated die-casting, including Ford, Hyundai, and Toyota.
Several industry insiders have previously told Interface News that it will be difficult for the automotive industry to widen the gap in new products in the future. How to reduce production costs and further increase sales is the key to brand competition.