Aluminium exhibition | New Energy Vehicles + Photovoltaics: Boosting the Demand for Aluminum

With the surge in sales of new energy vehicles coupled with increased aluminum consumption per vehicle, lightweighting of automobiles looks promising for the future. Aluminum, crucial for lightweighting, is mainly used in battery systems, wheels and brakes, doors and hatches, chassis and suspensions, collision management systems, etc. For new energy vehicles, using aluminum is more conducive to reducing weight while maintaining structural strength, thus minimizing power loss. According to the International Aluminium Institute (IAI) data found at the aluminium exhibition, by 2025, it's projected that new energy vehicles will use an average of 230kg of aluminum. By 2030, this is expected to increase to 280kg, a 25.56% rise compared to conventional gasoline vehicles. Delving deeper, different sections of new energy vehicles are expected to see varying increases in aluminum usage.

In terms of sales, the global demand for new energy vehicles is driving a significant increase in aluminum consumption. Based on the International Energy Agency (IEA) data, in 2022, Europe sold 2.7 million new energy vehicles (up 17.39% YoY), the U.S. sold 1 million (up 42.86% YoY), while other regions maintained sales at 600,000 vehicles. As of April 26, 2023, global new energy vehicle sales have surpassed 2022 figures, reaching 13.9 million, and are expected to set new records by year-end.

In China, the sale of new energy vehicles continues to soar. In the first half of 2023, sales hit 3.75 million units, a 44.12% increase YoY. In the third quarter alone, 2.53 million units were sold, marking a YoY growth of 28.68% and a QoQ increase of 17.15%. The market share of new energy vehicles in China is also expected to grow steadily. By 2030, they will account for about 34% of the market. Moreover, production is expected to rise to 4 million units in 2023 (14.16% of total vehicle production) and 11.8 million units by 2030, a 33.8% share. Both pure electric and hybrid vehicles will be the main drivers of this growth, with CAGRs of 22.96% and 18.76% respectively from 2018 to 2030.

On the power generation side, aluminum for photovoltaics is also rapidly increasing. The global photovoltaic installation capacity is swiftly growing, likely spurring an uptrend in aluminum consumption. Aluminum is primarily used in PV module frames and mounts. According to SMM data, each GW of photovoltaic frames consumes between 9,000 to 11,000 tons of aluminum, while each GW of mounts consumes 19,000 tons. Based on authoritative data sourced from the aluminium exhibition, from 2023 to 2025, global aluminum consumption in the photovoltaic sector is projected to be 4.82, 5.22, and 5.62 million tons respectively, with a three-year CAGR of 20.51%. Given the worldwide push for clean energy, the rising installation capacity of photovoltaics is expected to continuously boost aluminum demand.