Toyota Motor Corporation (NYSE:TM) reportedly plans to install a large gigacasting machine at one of its Japanese plants by the end of this year.

This move is part of Toyota's strategy to reduce electric vehicle (EV) production costs by implementing a manufacturing technique that Tesla has successfully utilized, reported Nikkei Asia.

Japanese company Ube Machinery manufactures massive gigacasting equipment.

Read: Toyota's Lexus Aims To Build Own Plant In China For UX Hybrid And BEV Production: Report

The machine, located at a production center in Aichi prefecture, will be one of Japan's largest casting machines, delivering 9,000 tonnes of clamping pressure.

As per the report, gigacasting machines generally exert at least 6,000 tonnes of force and create large vehicle modules by merging multiple components using molten aluminum alloy injected into a molding machine under high pressure.

By molding multiple components in one step, EV makers can reduce vehicle weight and boost production efficiency.

Read: Toyota Expands EV Production With New Fukuoka Battery Plant: Report

Toyota will introduce gigacasting with the LF-ZC, a next-generation Lexus EV scheduled for launch in 2026.

The gigacasting machine at Toyota will be used to prototype EV components, not mass production. Toyota will evaluate if the technology reduces parts, streamlines processes, and results in lighter EVs.

Toyota intends to reinvest profits from its successful hybrid business into EV development to catch up with global competitors.

As per the report, over 10 companies, mostly in the U.S., Europe, and China, are adopting gigacasting. Tesla uses gigapresses with clamping pressures between 6,000 and 9,000 tonnes. Honda has deployed a 6,000-tonne gigacasting machine at a research facility in Tochigi and Nissan plans to install a 6,000-tonne machine by fiscal 2027, aiming to cut component weight by 20%.

Toyota stock has gained around 14% in the last 12 months. Investors can gain exposure to the stock via ActivePassive International Equity ETF (NYSE:APIE) and Avantis International Large Cap Value ETF (NYSE:AVIV).

Also Read: Toyota's Bold Move: Gasoline Cars May Be Phased Out As Hybrids Take Over

Price Action: TM shares are up 1.74% at $184.50 premarket at the last check Wednesday.

Photo by RYO Alexandre on Shutterstock

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