Japanese steel giant JFE said Tesla's integrated die-casting technology would bring "very big problems" to the company's business.

CTOnews.com, July 12, according to Reuters, JFE holding CEO, Japan's second largest steelmaker, believes that automakers' use of integrated die casting (Gigacasting) technology will pose a risk to the company's business, as it may lead to a significant reduction in steel use.

▲ drawing source Pexels integrated die casting is Tesla's pioneering technology, which can produce larger and lighter aluminum parts than ever before, which is essential for electric vehicles equipped with heavy batteries and can effectively reduce their production costs.

CTOnews.com previously reported that Toyota has become the latest automaker to adopt integrated die casting. In addition to Toyota, General Motors, Hyundai and other manufacturers are also interested in the technology.

Shiki said the integrated die-casting technology was "a very big problem" for JFE because "the use of crude steel will be significantly reduced as a result of the popularity of the technology". However, he added that because aluminum is not as strong as steel, the most vulnerable parts of electric vehicles may need steel to improve safety.

In may, JFE holdings said it expected net profit for the current fiscal year to rise 17% to 190 billion yen (CTOnews.com note: currently about 9.747 billion yuan) due to the recovery of the auto industry and strong steel demand. Mr Shiki said JFE Holdings might consider investing in coking coal, which is vital to steelmaking, and that demand for such products is expected to remain strong in the coming decades.