Seojin System is supplying metal molds for car body die-casting to a global auto giant, the company’s CEO told TheElec. This customer, which ranks within the top five in terms of revenue among automakers, will use it for its electric vehicles.
Seojin System is also building a large die-casting factory in Bac Giang province in Vietnam and two units of 9,200-tonne die-casting equipment made by Buhler Group of Switzerland will be installed there between July and August, Seojin System CEO Dong-Kyu Jeon said.
The company was using its existing 6,850-tonne die-casting equipment to supply customers with battery pack housing, end plate, and motor case.
Jeon said the company has a long experience in the processes needed to make die castings and is expecting an annual revenue of over 5 trillion won through this new business area.
Die casting can allow customers to reduce production time and reduce waste in production.
Most combustible engine cars in the past were made by adding and soldering parts to a metal plate to make the car body.
But as EVs use fewer parts, their body can be made through die casting, as Tesla is doing so currently through what it calls Giga Press. The US carmaker said using this method allows it to save cost by 40% and reduce the car body weight by 30%.
Hyundai Motor, Toyota, and Volvo have also announced that they plan to apply die casting in the production of their EVs, with application beginning in 2026 for Hyundai Motor and Toyota. Volvo plans to apply what is calls Mega Casting in 2025.
Besides the die-casting equipment from Buhler Group, Seojin System is also collaborating with Shibaura Machine to develop a 12,000-tonne die-casting machine, which will be the highest pressure for such a machine to date.
Larger tonnage means higher pressure, which can handle larger components and make smaller components more precisely. The machine will be built within Seojin System’s factory due to its size. The company said the machine will be used to make the car body of SUVs.
Meanwhile, CEO Jeon said the company expects revenue to increase 50% year-on-year in 2024 thanks to increased sales in energy storage systems and fab equipment parts.
Expanded sales with Lam Research are contributing to the expanded sales in fab equipment parts. The pair are planning to form a joint venture in Vietnam instead of supplying parts domestically in South Korea.
