NJYH Metal Technology Co., Ltd., a leading manufacturer of magnesium alloy, aluminum titanium alloy, aluminum titanium boron, and aluminum strontium alloy materials, has released an announcement:
The company's products for Tesla are mainly divided into two categories, lightweight alloy materials and lightweight alloy products. I. Magnesium alloy materials are sold to downstream customers. The customers process the products and sell them to Tesla. 2. Magnesium alloy products are mainly magnesium alloy steering wheel skeletons, of which Yunhai Metal is a secondary supplier. 3. The company also indirectly supplies microchannel flat tubes and other aluminum extrusions to Tesla. The company currently does not directly supply Tesla.
In addition, the subsidiary CQBA Magnesium Aluminum Metal Co., Ltd. established a 5G base station development cooperation with Huawei and officially entered the Huawei industrial chain. The company's main cooperation product with Huawei is a 5G base station component magnesium alloy shielding cover. The project is currently in the ramp-up phase. The company will gradually develop more products for 5G project applications.
NJYH Metal Technology's magnesium alloys are mainly used in the automotive and 3C fields. The company has a complete magnesium industry chain from dolomite mining-raw magnesium smelting-magnesium alloy-magnesium alloy deep processing-magnesium alloy recycling. The production and sales volume of Yunhai Metal Magnesium Alloy in 2019 is about 160,000 tons. With the continuous expansion of magnesium alloy production capacity, the current magnesium alloy production capacity is 180,000 tons. It is expected that the production capacity will increase to about 200,000 tons in 2020.
From the perspective of the supply side, due to environmental protection issues, the increase in primary magnesium production capacity will be limited in the future; on the demand side, due to automobile emission reduction requirements, the penetration rate of magnesium in automobiles is expected to increase, and the amount of magnesium used in bicycles is expected to continue to increase. From the cost side, the current magnesium price is already at the industry average cost level, and it is expected that the subsequent magnesium price is expected to stabilize. With the release of NJYH Metal Technology's magnesium alloy production capacity, it will be able to better meet market demand.