The penetration rate of aluminum alloy material in new energy vehicles reaches 26%, exploding the market demand for aluminum for automobiles

Thanks to the implementation of the dual carbon strategy, the continued strength of industrial policies, the continuous improvement of the industrial chain, the continuous breakthrough of technology research and development, and the continuous addition of new forces, the new energy vehicle industry is embracing new opportunities for high-quality development.

According to sales data released by the China Automobile Dealers Association, 420,000 new energy vehicles were sold in May, with a market penetration rate of 26.5 %. In addition, in the list of new energy penetration rate for the first half of 2022 released by the Galaxy Automotive Research Institute, there are currently 20 cities in China with a penetration rate of more than 20 %. The top 10 cities are Shanghai, Wenzhou, Hangzhou, Foshan, Wuxi, Guangzhou, Tianjin, Suzhou and Nanjing, all with penetration rates of more than 30 %.

The penetration rate of new energy vehicles has repeatedly reached new highs.

Will fuel cars be replaced by the mainstream? 

What is penetration? Penetration rate and occupancy rate are two different concepts. Penetration rate is the ratio of current demand to potential future demand. It is an estimated value. Market share is a competitor's share of the current market. It is a definite value. According to the general understanding of the industry, the penetration rate exceeds 20%, indicating that new energy vehicles are becoming a local market trend. Today, the data proves that the trend of new energy vehicles replacing fuel cars is more and more obvious!

In terms of data, the penetration rate of new energy models in 2015 was only 1.4%. In 2020, it slowly climbed to 5.8%. One year later, it surged to 14.8%. On current trends, this figure is expected to reach the 30% "tipping point" by the end of the year, accounting for a third of the car market.

New energy vehicles are gaining momentum.

Further drive automotive aluminum towards the explosion!

Aluminum and its alloys is currently the most widely used, one of the most economy applicable materials, lightweight structure based on its excellent performance, as well as the prominent advantages of the conductive thermal conductivity, in terms of automotive aluminum, has spawned a relatively complete industrial chain, the casting, casting and forging, rolling, extrusion and among them, Cast aluminum alloy is mainly used in automobile engine cylinder block, cylinder head, clutch housing, bumper, wheel, engine bracket and other parts; Rolled aluminum sheet with foil is mainly used for body panel, door skin, heat dissipation system, battery shell, battery foil, etc. Extruded profiles are mainly used for anti-collision beams, hanging parts, various supports, battery trays, etc. Forged parts are mainly used for wheels, bumpers, crankshafts and so on. There are relevant data surface, at present all kinds of aluminum alloy used in the automobile proportion is roughly: cast aluminum 77%, rolled material 10%, extrusion material 10%, forging material 3%.

■  About automotive aluminum sheet & Aluminum extruded material

Lightweight is a realistic way for new energy vehicles to achieve energy conservation and emission reduction. Lightweight technology based on the demand of "weight reduction" may help more enterprises to serve the new forces of new energy car manufacturing. From the general environment, the core demand growth logic of automobile aluminum sheet and aluminum extrusion material is that under the background of more emphasis on lightweight, with the gradual penetration of new energy vehicles, some data predict that by 2025, the domestic automobile aluminum sheet and aluminum extrusion material market will reach 50.4 billion yuan and 34.2 billion yuan respectively. In 2021-2025, the CAGR was 26% and 24%, respectively.

■  About thermite transfer materials

Among thermite transfer materials, automobile heat exchanger is the main application field, including automobile air conditioner, water tank, oil cooler, intercooler and heater, etc. It is understood that a car usually has more than 10 heat exchange unit, heat exchange system of the new energy car itself to the amount of aluminium heat transport material compared to traditional gasoline, almost doubled, in effective ways, composite materials manufacturing aluminum heat transfer heat exchangers can make the car heat exchange system weight loss of about 40%, and significantly improve the heat exchange efficiency.

■ About Battery aluminum foil

Benefiting from the rapid development of global new energy vehicles, power batteries have entered the rapid growth period, and the demand of the upstream material battery aluminum foil market has also increased rapidly. Battery aluminum foil is a special component of new energy vehicles, which is mainly used as a positive fluid collecting material for power and energy storage batteries. Its processing difficulty lies in the exquisite internal safety performance of batteries, and the strength and tolerance requirements of materials are far greater than those of ordinary aluminum foil.

We can see, many car aluminum extrusion materials, benefit penetration of new energy vehicles lightweight industry booming, capacity expansion, is expected to further enhance the space to grow up and at the same time, under the blessing of "green" double carbon, aluminum foil, aluminum alloy parts, car batteries and a series of car industry chain product demand increased.

How to share the development dividend of new energy vehicle industry? Focusing on the automotive aluminum industry chain, there are differences in investment opportunities in different subdivisions of the track. Each enterprise should find the right focus and foothold to further explore the potential and development space of the enterprise in the field of aluminum for new energy vehicles.