The use of new materials is one of the important ways to achieve automotive lightweighting. Currently, common automotive lightweighting materials on the market mainly include high-strength steel, aluminum alloys, magnesium alloys, etc. Among them, magnesium alloy and aluminum alloy have a high degree of overlap in the scope of use of automotive components and can be replaced by each other.
In terms of lightweight and other characteristics, magnesium alloys clearly have better performance. According to relevant data, the density of magnesium alloy is about 2/3 of that of aluminum alloy. Although it is lighter, the strength of magnesium alloy is stronger than that of aluminum alloy. Under the same rigidity conditions, the strength of 1kg magnesium is equivalent to that of 1.8kg aluminum. Within the elastic range, the energy absorbed by magnesium alloy under impact load is also 50% higher than that of aluminum alloy. In addition, due to the low heat capacity of magnesium alloys, their production efficiency is 40% -50% higher compared to producing the same aluminum alloy castings.
Compared to aluminum alloy, magnesium alloy can achieve a weight reduction effect of 25% -35%. At present, magnesium alloys may be used to replace aluminum alloys in dozens of automotive components such as engine systems and transmission systems, but the most commonly used magnesium alloys are still instrument panel bases, seat frames, steering wheel frames, etc.
Although magnesium alloys have excellent performance in many aspects, their application proportion in automobiles in China has not been high due to price reasons. According to a research report by Yongxing Securities, before 2023, the proportion of magnesium alloy used in automobiles in China is only about 0.3%, far lower than the amount of aluminum alloy used. The average amount of magnesium alloy used per vehicle in China is only 3-5 kilograms, far lower than the average amount of magnesium alloy used per vehicle in the North American market of 15 kilograms.
However, with the continuous decline in material prices, the advantages of magnesium alloys have become prominent, and the market penetration rate has begun to rapidly increase. According to data from Shangpu Consulting Group, the average magnesium alloy usage per bicycle in China for the whole year of 2023 was 10kg, an increase of 66.7% compared to 2022. During the same period, the average magnesium alloy usage per bicycle in the North American market was 18kg, an increase of 20% compared to 2022.
According to the "Energy saving and New Energy Vehicle Technology Roadmap 2.0", by 2025 and 2030, the specific targets for magnesium consumption per vehicle in China will reach 25kg and 45kg, respectively. The application of magnesium alloys in the automotive industry still has huge growth potential. According to the research report website, it is predicted that the demand for magnesium alloy automotive die-casting parts in China is expected to reach 680000 to 1.37 million tons by 2025 and 2030, with a compound annual growth rate of 15% from 2025 to 2030.
From the above data, it can be seen that the demand for magnesium alloys in automobiles has entered the fast lane, which is expected to provide huge development opportunities for high-quality enterprises in the magnesium alloy industry. At present, companies producing magnesium alloy components in the A-share market include listed companies such as Yi'an Technology (300328. SZ), Wanfeng Aowei (002085. SZ), Baowu Magnesium Industry (002182. SZ), etc. These listed companies are expected to fully enjoy the industry dividends.
