Minmetals Securities: Magnesium electric drive technology iteration breakthrough, industrial consumption scale expansion.

Minmetals Securities released a research report stating that since the beginning of 2026, the growth rate of magnesium alloy has accelerated, mainly due to the increasing demand for magnesium alloy components in the new energy vehicle industry. The application of magnesium alloy electric drive housings has entered the mass production stage, potentially bringing a market size of up to 14.243 billion yuan. If magnesium alloy electric drive housings continue to increase in volume, magnesium alloy component processing companies may benefit; once magnesium alloy electric drive housings are mass-produced, it may drive the accelerated promotion and application of other magnesium alloy components. Minmetals Securities' main points are as follows: - Magnesium alloy growth rate in the first quarter reached 36.32% Since the beginning of 2026, the growth rate of magnesium alloy has accelerated, with a growth rate of 36.32% in the first quarter compared to the average single quarterly output in 2025, mainly driven by the increasing demand for magnesium alloy components in the new energy vehicle industry. - Mass application of magnesium alloy electric drive housings may bring potential market size of over one hundred billion Currently, major car manufacturers such as SAIC, Geely, and Chang'an are actively deploying magnesium alloy electric drive housings, and many car manufacturers have already started using them. The application of magnesium alloy electric drive housings has entered the mass production stage, potentially bringing a market size of up to 14.243 billion yuan. - Potential cost reduction of 250 yuan per vehicle by installing magnesium alloy electric drive housings The active layout of car manufacturers in magnesium alloy electric drive housings is mainly driven by the potential for cost reduction. In terms of material costs, the potential cost reduction per vehicle in terms of materials may reach 250 yuan. In addition, the technical progress of magnesium alloy and related processing processes is also a key factor driving car manufacturers to start using magnesium alloy components. - Magnesium alloy component processing companies and related supporting enterprises may benefit from this If magnesium alloy electric drive housings continue to increase in volume, magnesium alloy component processing companies such as Baowu Magnesium Technology and Ningbo Sinyuan Zm Technology may benefit. In addition, the demand for expanded production of various component processing companies may increase, and upstream and downstream related equipment manufacturers and surface treatment companies such as Huqing Technology and Bolet Intelligent may also see business growth. Once magnesium alloy electric drive housings are mass-produced, it may drive the accelerated promotion and application of other magnesium alloy components. Risk warning: 1. Magnesium alloy electric drive housings are in the initial mass production stage and may have potential technological risks; 2. The production capacity of related industries upstream and downstream may be limited in the initial stage, affecting the progress of mass production.