SpherePower to Invest in Alloy Material Company GAM and Promote JV Establishment

Spearpower, a KOSDAQ-listed company led by CEO Jaehyun Lee, is exploring new business opportunities by entering the global aluminum market, which is valued at approximately $250 billion worldwide. Following the signing of an MOU with alloy material company GAM (CEO Jinyeol Choi) in June, Spearpower is preparing to establish a joint venture (JV) to actively enter the new business after making an equity investment.

GAM is a company that possesses non-heat-treated high-strength aluminum alloy technology applicable across industries requiring high strength, including automotive, aerospace, shipbuilding, robotics, defense, construction, and railway vehicles.

The aluminum alloy technology owned by GAM is known as a unique technology that can produce high-strength aluminum through die casting (a casting method that forms products by injecting material into molds at high temperature and pressure) without heat treatment. Additionally, GAM has completed verification of its technological value by registering related patents and obtaining a Ti-3 grade technology evaluation.

According to a GAM representative, the high-strength aluminum alloy material has mechanical properties suitable for use in "Giga Die Casting," which is attracting attention in the automotive industry.

Giga Die Casting, referring to ultra-large die casting, began gaining attention with the introduction of the "Giga Casting" process by electric vehicle manufacturer Tesla in 2021. Tesla’s Giga Die Casting equipment utilizes press machines rated at 6,000 and 8,000 tons, significantly increasing the pressure compared to the maximum 4,000-ton die casting equipment used in the existing automotive industry, enabling the production of parts with excellent physical properties while reducing process costs.

While conventional die casting methods have been widely used to manufacture individual vehicle parts, Tesla’s introduction of the Giga Die Casting process allows for precise machining of complex shapes with thin thicknesses, enabling product lightweighting and mass production. As a result, following Tesla’s adoption of the Giga Die Casting process, major global automakers including Hyundai Motor Company, Toyota, and Volkswagen are also hastening their review of adopting this technology.

Another advantage of aluminum alloys for Giga Die Casting is that it is an environmentally friendly technology that can reduce CO2 emissions generated during the heat treatment process. Since the heat treatment process, which was essential in conventional aluminum casting methods, is no longer necessary, costs can be significantly reduced while allowing for free molding and shortening multiple process steps.

In the automotive industry, interest in low-carbon process technologies is increasing amid strengthened laws and regulations following countries’ decarbonization policies. GAM, which possesses metal material technology capable of achieving high strength without heat treatment, is expected to experience rapid growth as it holds core technology in the low-carbon market, which is projected to grow from approximately $81.9 billion in 2022 to $120 billion over the next 10 years through 2031.

GAM’s alloy technology is known to be gaining attention not only in the automotive industry but also in various industrial sectors that use high-performance metal materials. In particular, according to company officials, they are discussing specific business opportunities with various companies in the UAE, Saudi Arabia, India, and the United States.

A Spearpower representative stated, “The alloy technology possessed by GAM meets the technological competitiveness required in the global market,” adding, “We plan to establish a joint venture (JV) with GAM to actively enter the global aluminum alloy market.”

Meanwhile, the global aluminum market size is approximately $229.85 billion (about KRW 305 trillion) as of 2023, expected to grow steadily to $243.89 billion in 2024 and $393.7 billion (about KRW 500 trillion) by 2032. It is a large-scale industry with a high growth rate, with an annual CAGR of 6.2% forecasted among non-ferrous metals.

This content was produced with the assistance of AI translation services.