Assessing the Impact of Electric Vehicle Development on Automotive Metal Parts

Abstract

The automotive industry is facing significant challenges with the shift towards electric vehicles (EVs), affecting supply chains and small to mediumsized enterprises (SMEs) specializing in internal combustion engine (ICE) components. This transition from ICE to battery electric vehicles (BEVs) is particularly impactful on power system components. Traditional engines, fuel tanks, and gearboxes are being replaced by electric motors, batteries, and simpler gearboxes, leading to a decrease in metal components produced through stamping, casting/forging, or machining, and an increase in electronic components. Although the ICE market is expected to remain viable for the next decade, suppliers of metal components are experiencing a decline in orders and must adapt within the next 7-10 years. The most significant growth in demand is for the Electric/Electronic Control Interface (EIC) system, comprising battery management, electric control, and motor systems. These components are essential for EVs and present new business opportunities for metal component suppliers. The transformation also extends to car body design and manufacturing. New body structure parts must meet crash safety standards while being lightweight and comfortable, driving the demand for specialized metal materials and processing techniques. Even small auto parts like fasteners are affected; EV batteries use fewer fasteners, but those required are more expensive and profitable due to their involvement in electrical conductivity and complex manufacturing processes. This shift represents a crucial manufacturing issue and an opportunity for better profit margins compared to fasteners used in ICE vehicles.