Business Strategies - Mobility

Mission of Mobility Business

In response to rising technological needs associated with CASE, particularly those related to the shift to electrified vehicles, we develop products that utilize Resonac’s weight reduction, electrification, and heat control technologies. We will transform ourselves into a proposal-based solution business and achieve sustainable growth with profitability.

Strengths and Competitive Advantages for the Achievement of the Long-Term Vision

We will make use of Resonac’s strengths and competitive advantages to become a world-class functional chemical company and a company that can compete on the world stage by 2030.

Automotive products:

  • Molded plastic exterior products (resin rear door modules and resin foam molded products), whose strengths lie in weight reduction and design flexibility required for electric vehicles (BEVs)
  • In composite materials, maintenance of our leading domestic share for mainstay plastic gears while developing heat control products, such as radiators, for which demand is expected to increase in line with the spread of EVs
  • Unique aluminum alloy design technology that provides durability and wear resistance not found in general-purpose aluminum alloy
  • High-level aluminum manufacturing technology that enables the extrusion, joint brazing, horizontal continuous casting, etc., of large complex shapes that are difficult to manufacture
  • Provision of high-performance, wear-resistant brake pads that comply with European environmental regulations (EURO7)

Lithium-ion battery materials:

  • Provision of anode materials that realize lithium-ion batteries with greater capacity and superior charge-discharge load characteristics
  • VGCF that contributes to increased capacity and battery lifespan

Strategies of Mobility Business for the Achievement of the Long-Term Vision

In the mobility business, we regard the increasing needs for CASE technologies, particularly the expansion of needs driven by the progress of xEVs, as a business opportunity. Based on this recognition, we will make use of our technologies for weight reduction, electrification and thermal control as our growth strategy for the further growth of our business. On the other hand, in the business targeting ICE vehicles, for which the market is shrinking, we will optimize production capacity and reduce fixed expenses to establish a resilient revenue base. In this way, we will manage our business portfolio to achieve EBITDA margin exceeding 20%.

Growth strategy for the mobility business

Vision for 2030 and Roadmap to Achieve It

Automotive producs:

Vision for the future(2030) Issues to Be Addressed Results in 2023 Plans for 2024
  • Achieve the top share of the global market by actively investing in niche markets for composite materials, a heat control technology
  • Create new value through the combination of aluminum specialty components with other materials
  • Response to the rapid progress in vehicle electrification
  • Structural reforms and strengthening of price negotiation capabilities
  • Negotiated price revision or withdrawals with customers for 32 of our 48 key products. Achieved price revision for roughly 80% of products, resulting in a year-on-year rise in profit (profitability improvement totaled ¥ 3.4 billion in fiscal 2023)
  • Accelerated development of EV components by utilizing the Power Module Integration Center (PMiC)
  • Started construction of a second brake pad plant in India. Also developed and started production of brake pads for EV manufacturers in North America
  • Moderate year-on-year growth of the automobile market expected as pullbacks in demand ease in various areas
  • Development of new foam molded products and new products for the provision of heat control solutions
  • Establishment of a solid revenue base by reaping the benefits of structural reforms
  • Acceleration of co-creation with the aluminum specialty components business in weight reduction and heat control solutions

Lithium-ion battery materials:

Vision for the future(2030) Issues to Be Addressed Results in 2023 Plans for 2024
  • Capture markets with rising needs associated with the advancement of electrification and the pursuit of carbon neutrality
  • Establishment of mass production technology for new anode materials made from artificial graphite
  • Stable supply of products through supply chain management
  • Acquired a large-scale project for EVs with our new artificial graphite anode material with fast charging  performance, etc.
  • Following China’s introduction of export permit requirement for natural graphite, we made a prompt application and are currently building up inventory
  • Sales increased due to the expansion of VGCF production capacity
  • Immediate full-scale mass production of acquired projects and development of products with even better performance
  • Multi-source search for graphite, a raw material, aimed at avoiding impact from the U.S.-China conflict
  • Construction of a pilot plant for anode materials in Europe to respond to market expansion and local production needs in Europe and the U.S.

TOPICS 2024 of Mobility Business

Controlling Physical Properties of Aluminum Alloy and Visualizing CO2 Emission Flow through Computational Science

As part of our efforts to achieve carbon neutrality, we are focusing on the development of aluminum alloy, which is seeing an increase in demand from the automotive industry, with the help of computational science. Aluminum is lightweight and consumes less energy during the recycling process, which can significantly reduce CO2 emissions. In aluminum recycling, it is crucial to better preserve the properties of aluminum while increasing the utilization of scrap containing impurity elements.

The key to obtaining the properties of aluminum alloy and other metallic materials, which change as the raw materials undergo various processes, is controlling the material structure. By controlling the behaviors of impurity elements derived from scrap in a sub-micron order, we have successfully developed aluminum alloy that contributes to carbon neutrality. By collaborating with respective analytical technologies, using computational science simulations that enable us to understand physical phenomena in detail, we are working to clarify the mechanisms of property expression and obtain guidelines for mass production processes.

We are also actively working on the calculation and reduction of CO2 emissions associated with aluminum alloy production at manufacturing sites. In addition to building a CO2 emission simulator based on manufacturing processes using computational science, we are establishing a workflow that anticipates fluctuations in CO2 emissions and the possibility of resource recycling throughout the supply chain. We believe that this adds to the significance of us providing recycled aluminum alloys to our customers, and contributes to optimizing CO2 reductions with an eye to achieving carbon neutrality across the entire supply chain.

Solution of Social Issues through Business Operations

Business/Product How to contribute to society Related SDGs
Molded plastic rear door modules, exterior foam molded products, and plastic gears Reduce CO2 emissions through weight reduction for higher fuel efficiency 7、9、12、13
Anode materials, SPALF and VGCF Reduce CO2 emissions by spreading the use of storage batteries and improving their performance 7、9、12
Copper-free disk pads Improve the global environment by reducing the use of copper, which is subject to environmental regulations 7、9、12
Cooling devices for Evs Reduce energy loss by reducing the weight of materials 7、9、13、15