Investment Rating - The report rates the automotive industry as "Positive" [2] Core Insights - The magnesium alloy market is projected to reach a potential market size of 39.758 billion yuan, with a significant increase in usage in the automotive sector [11][26][30] - The total weight of magnesium alloy components currently used, being replaced, or in trial in domestic vehicles is approximately 106.47 kg per vehicle, indicating a market space of 1.37 million tons per year starting in 2024, which is seven times the production of magnesium alloy die-cast parts in 2023 [11][26] - The cost advantage of magnesium alloys over aluminum alloys is expected to become more pronounced after magnesium prices fall below aluminum prices in 2024 [11] - Breakthroughs in corrosion resistance of magnesium alloys are opening new opportunities for their application in automotive parts, expanding from closed areas to open areas [11][26] Summary by Sections 1. Magnesium Alloy Corrosion Resistance Improvement - The application of magnesium in vehicles is expanding from closed areas to non-closed areas due to improved corrosion resistance [11] - The cost advantage of magnesium alloy components is becoming more evident as magnesium prices drop below aluminum prices [11] 2. Market Space for Trial Magnesium Alloy Components - Magnesium alloys are currently in the experimental verification stage for parts like shock towers and integrated die-cast floors [13] - The market space for magnesium alloy integrated die-cast floors is estimated at 9.667 billion yuan per year based on 2024 projections [15] 3. Market Space for Replacement Magnesium Alloy Components - Magnesium alloy electric drive housings are entering mass replacement applications, with significant weight reduction and cost savings [18][20] 4. Mature Applications of Magnesium Alloy Components - Established applications include parts like instrument panel beams and steering wheel frames, with a market size of approximately 2.169 billion yuan per year [21] 5. Planned Magnesium Alloy Components - Ongoing trials for complex-shaped components such as battery pack housings and control arms are underway, with significant potential market sizes projected [22][24][25] 6. Potential Market Size for Magnesium Alloys in Automotive Applications - The overall potential market size for magnesium alloy components in the automotive sector is estimated at 39.758 billion yuan, with a total potential usage of approximately 2.1165 million tons [26][30] 7. Magnesium Alloy Component Manufacturing Industry Chain - The industry chain includes upstream raw magnesium and magnesium alloy smelting, midstream magnesium alloy component manufacturing, and downstream users such as automotive companies [32][33]