General Motors has quietly purchased a key gigacasting company that was being used by Tesla in its pioneering process of slashing manufacturing costs by casting large body parts for its vehicles.
It was recently revealed that GM had agreed to buy Tooling & Equipment International (TEI) which specializes in sand casting techniques and had served as one of four key gigacasting firms being used by Tesla. Unnamed sources assert that TEI started working with Tesla in 2017 to develop the Model Y and has more recently been instrumental in gigacasting mold prototyping for the Model 3, Cybertruck, and Semi.
Reuters asserts that GM likely paid between $80 million and $100 million for TEI. The company is considered as one of the world’s top sand-casting specialists. It uses powerful 3D printers or binder jets to build test molds out of industrial sand that can then be used to cast molten alloys. TEI’s process is quick and it is cheap to tweak and adjust mold designs.
Read: What The Hell Is Gigacasting And Why Are Automakers Going Crazy For It?
The company, as well as three other gigacasting firms being used by Tesla, has allowed the automotive juggernaut to develop new alloys to be used in sand casts while also improving techniques for heat-treating casted metal body parts.
Prior to the purchase, GM first worked with TEI in 2021 when testing and producing underbody castings for the all-electric Cadillac Celestiq. The carmaker later signed a long-term contract with TEI while the sand-casting firm invested in a new production line just for the Celestiq. TEI became a part of GM’s Global Manufacturing Division on July 1 but details about the purchase only recently came to light.
“General Motors acquired Tooling & Equipment International (TEI) to bolster its portfolio of innovations and secure access to unique casting technology,” GM confirmed in a statement. “TEI will remain its own business entity with GM as its parent company.”
