The automobile industry is now gearing towards electromobility in the next couple of years, with the expected increase in the number of electric vehicles registered in 2025. The rise in electromobility demand may also affect the production of light metal castings. The reduction of a vehicle’s weight can increase the distance that the car can achieve. For this reason, the possible change in the automobile industry may be a great opportunity for the aluminum casting industry.
Electromobility and the growing demand for electric cars
The demand for electric cars is expected to increase by 2025 as electromobility becomes more relevant with each passing year. Companies, such as Peninsula Light Metals, are currently working to provide low-cost aluminum castings to ensure that all their clients will be able to afford their products without taking the quality for granted.
Latest trends supporting automotive innovation
According to Market Watch, it is estimated that the Global Automotive Lightweight Materials market will reach at least $256.4 billion by 2022. Several factors, such as growth in fuel efficiency of most vehicles, improvisation of vehicle strength, and reduction in carbon dioxide emissions, constitute to the market growth. However, other factors, such as the increasing cost of raw materials to produce lightweight materials and an increase in the prices of vehicles, might hamper the market’s potential growth.
Meanwhile, the metal sector holds the biggest share in the Automotive Lightweight Materials market because of its importance in the production of automobiles. A few of the key players in the market are Bayer AG, Toray Industries Inc., and Owens Corning Corporation.
The recent development in the automobile market can create better possibilities for the light metal casting industry. As a result, automobile companies can ensure that their cars will reach longer distances and offer reasonably priced batteries for electric cars.