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Expert Interview on Megacastings: "Close Collaboration Between Foundries and OEMs is Crucial"
Megacastings not only bring new momentum to the die casting industry, they also reshape the entire automotive value chain. While China is pushing this new technology, historical markets remain hesitant – with uncertain consequences. We spoke with Mathieu Bernard and Bernhard Langefeld from Roland Berger about the potential, challenges, and future of large high-pressure die casting (HPDC) parts, otherwise known as megacastings.
Mathieu BernardMr. Bernard, Mr. Langefeld, you both contributed to Roland Berger’s latest study on megacastings. What was the starting point for this analysis, Mr. Bernard?
Mathieu Bernard: Our study is a follow-up to an earlier analysis in which we had already predicted the growing importance of megacastings in the automotive industry. This time, we focused more on how megacastings are reshaping the value chain and how Europe compares with China and other markets in its adoption of this technology.
What are the key findings regarding the impact on the value chain?
Mathieu Bernard: As always, there will be winners and losers. For example, traditionally, many small parts were manufactured separately and then assembled or welded together. With megacastings, many of these assembly steps are eliminated. Depending on the OEM, the adoption of megacastings allowed them to drop down from about 100 welded parts to a single megacasted one.
This reshuffles the entire deck of cards in an industry with growing pressure on traditional stamping, welding, and conveying, and robotized activities. Companies will need to keep a close eye on this evolution and react accordingly to remain relevant and competitive.
At the same time, new business fields are emerging, such as the manufacturing of large casting molds or the development of optimized aluminum alloys for high-pressure die casting. For giga-press manufacturers or aluminum producers, this shift could also present exciting and lucrative opportunities.
Bernhard LangefeldHow does the global landscape compare, Mr. Langefeld?
Bernhard Langefeld: Megacastings are fundamentally driven by three factors: first, operational efficiency; second, the emergence of brand-new greenfield facilities with no legacy; and third, material efficiency to comply with regulations and electric vehicle range expectations (recyclability and weight of aluminum). Over 180 presses have already been ordered – not only by OEMs but also by suppliers. Our study indicates that by 2030, around 25 million megacasted components will be produced across China, North America, Japan, Korea, and Europe.
China is leading the change, with twelve vehicle platforms already using megacastings. By contrast, only six platforms in North America, six in Japan and Korea, and four in Europe have adopted the technology.
So, is Europe falling behind?
Mathieu Bernard: Europe has strong technological expertise, with global leaders in the die casting machinery segment. However, the challenge lies not so much in technology but rather in the existing OEM legacy infrastructure.
New market entrants can integrate megacastings from the outset because they are not burdened by legacy production systems and designs, and they can adopt this new technology with greenfield operations. In contrast, incumbent European and North American automakers are more cautious because they already have established production lines – many of which are not yet fully amortized. Converting these plants is expensive and risky, which explains the slower adoption rate in the West.
Could you elaborate on the key challenges?
Mathieu Bernard: In fact, we see four key challenges. First, scrap rates are still high at up to fifty percent, which requires improved process control and alloy development. Second, the CAPEX required to implement the technology is high and might be a barrier at a time when cash is paramount – it costs 60 to 80 million euros for the development of a couple of megacasting lines.
Third, repairing megacasted components is a challenge for repair shops and insurance companies alike, as any damage is difficult to repair and involves higher costs. Fourth, tool changes and post-processing adjustments – mostly machining – are expensive, so more efficient mold designs will need to be developed.
Does this slow adoption put European manufacturing sites at risk?
Mathieu Bernard: Megacastings are large and heavy components, so it makes little sense to transport them over long distances. In practice, this means that foundries have to be located closer to the final assembly plants. I therefore do not think that the European industry itself is strongly at risk.
Bernhard Langefeld: We do not expect production to switch to megacastings overnight but rather to ramp-up with the development of new models, the establishment of new facilities, or the revamping of existing ones. Not every vehicle will be made using megacastings, but for certain applications – such as front- and rear-end modules or even battery boxes – the technology has great potential.
Let’s ask a naive question: Can companies afford to ignore this trend and wait it out?
Mathieu Bernard: That would be an immense error. We believe that by 2030, megacastings will not just be being used by a few pioneers in the automotive industry but will also be in series production within some legacy OEMs. Most of them have already acquired megacasting presses and are actively running pilots to assess their respective potential with this technology and see how they can remain competitive.
Companies that do not address the implications early on will find it very difficult to adapt later. I also believe that close cooperation between tier 1 suppliers and OEMs will be crucial to overcoming the challenges I mentioned. As with any new technology in the industry, OEMs will tend to test it in-house for the first generation and then rely on their historical supplier ecosystem to develop it.
