A 6,800- ton integrated die-casting unit that could supply at least two U.S. listed Chinese electric vehicle makers was launched by Chinese aluminum alloy casting company Guangdong Hongtu Technology on Monday.
What happened to Nio Inc NYSE: NIO and Xpeng Inc NYSE: XPEV, two electric vehicle makers that entered the Guangdong Hontu supply chain last year.
Guangdong Hongtu would work with the subsidiary L.K. Technology to buy eight large and super die-casting units.
The executives of Nio and Xpeng are said to have participated in the launch event.
See also: Tesla Giga Press Supplier Says 6 Chinese Automakers Want Similar Tech Next Year
Why It Matters: Electric vehicle leader Tesla Inc. NASDAQ: TSLA is known to use large-scale integrated die-casting technology that is seen as the key to improving manufacturing efficiency for electric vehicle makers.
The Elon Musk-led Tesla has been investing heavily in casting and alloy technology and uses a series of big die casting machines to make car bodies with just a few large casted parts, a trend that is now catching on in the auto industry.
The Giga Press, as it is known, is Tesla's latest leap in manufacturing and is used to make the Model Y. The technology reduces the front and rear casting of the Model Y from hundreds of parts to just two.
At least six China-based electric makers have shown interest in adopting the Giga Press technology.