The Impact of Electric Vehicle Growth on the Machine Tool Industry

The machine tool industry has long been integral to the automotive sector, with applications in this field accounting for approximately 35-40% of the industry's output. As electric vehicles (EVs) continue to gain momentum, they are poised to bring significant changes to the machine tool industry.

While electric vehicles share a similar overall structure with traditional fuel-powered vehicles—comprising power, body, and chassis systems—the key difference lies in the power system. Unlike fuel vehicles, EVs do not rely on internal combustion engines and related components, such as intake and exhaust systems. Consequently, the demand for machine tools used in the production of these traditional engine components is gradually decreasing. However, this shift is offset by a growing demand for machine tools in the production of the EV-specific "three-electric" system: motors, batteries, and electronic controls. This change presents new growth opportunities for the machine tool industry.

As the automotive industry transitions from fuel vehicles to hybrids, plug-in hybrids, and ultimately pure electric vehicles, the demand for processing power components, particularly motors, is expected to rise steadily. Among the most widely used machines in this context are lathes, punching machines, and milling machines. Additionally, the winding process essential to motor manufacturing is driving demand for specialized mechanical equipment.

The increasing demand for batteries in EVs is also shaping the machine tool industry. Lathes and milling machines play a crucial role in battery production, particularly in the processing stages. Furthermore, the stacking (or lamination) process required for battery cells is emerging as a new area of opportunity within the industry.