Japan's Machine Tool Makers Shift Gears for the Electric Vehicle Revolution

Japan's established machine tool industry is undergoing a significant transformation as the automotive sector's pivot to electric vehicles (EVs) reshapes demand, reports Nikkei Asia. This shift comes as geopolitical uncertainty, particularly in light of President-elect Donald Trump's policies, casts a shadow over the market's short-term outlook.

At the recent Japan International Machine Tool Fair in Tokyo, Yamazaki Mazak, a leading machine tool manufacturer, showcased an EV platform alongside a new horizontal machining center designed for gigacasting. Gigacasting, a popular process used by Tesla and other EV makers, utilizes large presses to create large parts that would traditionally have been made from multiple smaller components. This method reduces weight and simplifies assembly.

"There's demand mainly from Chinese auto and parts makers," notes Kazuya Horibe, a managing officer at Yamazaki Mazak.

The EV transition is driving significant changes in the machining processes required for automotive production. EVs require fewer parts than gasoline-powered vehicles, eliminating certain machining processes while creating new demands, such as drilling aluminum parts and processing battery-related components.

Japan's machine tool industry, a pioneer in the adoption of numerical control technology, has historically been a global leader. While it remains a significant player, China surpassed Japan as the world's top machine tool supplier in 2009, and Germany is now Japan's closest competitor.

Despite these challenges, Japanese machine tool makers, renowned for their technical expertise and after-sales service, are well-positioned to capitalize on the EV transition.

However, uncertainty surrounding President-elect Trump's policies, including the potential elimination of EV subsidies and changes in environmental regulations, has created some hesitation among companies considering new investments. Some industry observers believe that this hesitancy could be overcome once Trump's policy plans become clearer.

Yamazaki Mazak anticipates EVs becoming a substantial portion of the auto market. While range and charging time remain concerns for fully electric models, the company sees strong growth in plug-in hybrid vehicles.

"If EV makers start investing in plug-in hybrids, gigacasting could be employed in them as well," a company representative states.

Brother Industries, a manufacturer of smaller machine tools, has also adapted its products to accommodate the larger components used in EVs.

"The rise of EVs has led to an increase in the machining of materials that are easy to cut, like aluminum, which is a tailwind for the small-machine market," says Makoto Hoshi, a senior managing executive officer at Brother Industries.

Despite potential Trump tariffs and geopolitical risks, Brother President Kazufumi Ikeda affirms, "we will continue to develop products without being swayed by short-term political trends."

At the recent machine tool fair, Komatsu NTC unveiled a dedicated gigacasting vertical machining center, while Fanuc displayed a robot designed for removing gigacast parts.

"Orders from China are increasing at the moment because companies that are actively investing are choosing high-quality Japanese products," observes Yoshiharu Inaba, chairman of the Japan Machine Tool Builders' Association and Fanuc.