Astemo Discusses Emerging Technologies While Expressing Worry Over Scarcity of Rare-Earth Elements
In the dynamic world of automotive manufacturing, Astemo Americas is making strategic moves to secure its future. The company, previously known as Hitachi Astemo in the Americas, is outgrowing its current headquarters and technical center in the Detroit area and is on the hunt for a new site to accommodate its expanding operations.
Astemo Americas, like many other auto suppliers, is proactively addressing the potential shortage of rare-earth magnets, a critical component in automotive applications, due to the U.S.-China tariff dispute and China's decision to limit exports of rare earths and related magnets. This supply constraint has created challenges in the supply chains vital to automakers and related industries.
To mitigate this risk, Astemo Americas, along with others in the industry, is exploring rare-earth-free alternatives and innovations. Companies like Niron Magnetics have pioneered the development of high-performance, rare-earth-free permanent magnets, which could serve as a viable substitute to traditional rare-earth magnets in automotive applications. This trend reflects a broader industry shift towards diversifying magnet sources and developing materials less reliant on constrained or geopolitically sensitive supply chains.
In addition to alternative materials, Astemo Americas is strategically stockpiling rare earth materials to buffer against immediate disruptions. The company is also innovating in electronic motor designs and supply chain agreements to mitigate overall supply risks. For instance, advancements in automotive power steering motor designs and semiconductor integration are being pursued to improve efficiency and potentially lessen reliance on scarce materials.
However, semiconductor supply tightness itself poses a separate challenge, driving manufacturers to negotiate long-term supply agreements and hold inventory buffers.
Astemo Americas is not only focusing on supply chain resilience but also on future-proofing its technologies. The company's e-pedal design, which eliminates the traditional hydraulic connection between pedal and brake, has caught the attention of European manufacturers. Astemo is also advancing new technology for suspensions, such as a camera-mounted system that previews road surfaces and potential bumps, with AI-powered control logic to adjust the suspension on the fly.
Moreover, Astemo's latest technologies for autonomous driving, electric vehicles, chassis, suspension, steering, and braking are showcased at events, demonstrating the company's commitment to a future without accidents and a smaller environmental impact.
Astemo's ADAS technology features a multi-camera system that uses artificial intelligence to develop automated driving solutions. The company's latest braking tech features an electro-mechanical brake-by-wire system that could help steer the vehicle to safety in an emergency.
Tim Clark, CEO of Astemo Americas, is tracking the tariff dispute between the U.S. and China, fearing potential shortages of rare-earth magnets used across the industry. To address this, Astemo is looking for alternatives to rare-earth magnets across the automotive industry to prepare for potential shortages.
In a forward-thinking move, Astemo Americas is preparing for an Initial Public Offering (IPO) next year, signalling its commitment to continued growth and innovation in the automotive sector. Astemo's operations in the Americas contribute about $5 billion to the company's $16 billion annual revenue, making it a significant player in the industry.
Astemo Americas' journey reflects an industry adapting to geopolitical supply constraints by diversifying materials and strengthening supply management. As the automotive sector continues to evolve, Astemo Americas is at the forefront of this transformation.
- Astemo Americas, besides focusing on supply chain resilience, is also exploring alternatives to rare-earth magnets, as they recognize the potential shortage of these magnets as a risk in the automotive industry due to geopolitical factors.
- As part of its future-proofing strategy, Astemo Americas is shown commitment to emerging technologies, such as electric vehicles and autonomous driving, through its latest technologies for chassis, suspension, steering, braking, and ADAS (Advanced Driver-Assistance Systems) that are showcased at events.
- In the long-term financial planning of Astemo Americas, the company is preparing for an Initial Public Offering (IPO) next year, signalling its dedication to growth and innovation in the automotive sector, especially within technology-driven areas like electric vehicles and autonomous driving.
