ZXZ Speeds Up Rollout of Its Lead Screw Business

Precision lead screws not only turn the joints of robots but also serve as the propellers that drive stock prices.

In the past month, numerous institutions have released research reports on the robotics industry. Analysts believe that, driven by favorable factors across multiple industries both domestically and internationally, the robotics sector is expected to see a significant rally in the fourth quarter.

Overseas, Tesla continues to invest heavily in robots. On the one hand, it has formulated a new $1 trillion compensation plan for Musk, with the goal of delivering one million AI robots, signaling that the robotics industry is entering its final stages of development. On the other hand, it has released "Grand Vision IV," stating that over 80% of the company's future value will come from Optimus, making robots one of the most critical components of the company's top-level design.

In China, leading star companies such as Yushu and Zhiyuan are accelerating their capitalization, and with strong domestic industry support, domestic robot shipments are expected to see significant growth.

From a supply chain perspective, lead screws, as one of the most valuable components in robotics, are expected to significantly unlock demand.

Opportunities and Challenges in the Lead Screw Industry

A lead screw is a mechanical component that converts rotational motion into linear motion. Mainstream lead screw solutions include trapezoidal, ball, and planetary roller screws. While planetary roller screws have higher manufacturing costs, they offer advantages such as high transmission efficiency, precision, long life, and strong load capacity.

As a fundamental support component of the high-end equipment manufacturing industry, the lead screw industry has experienced unprecedented diversification in recent years, driven by the wave of industrial automation and the advancement of intelligent manufacturing. High-end applications such as new energy vehicle steering systems, humanoid robot joint transmission systems, and aerospace precision transmission systems are constantly emerging, driving profound changes in the lead screw market structure.

In the robotics field, lead screws are core components for converting rotational motion into linear motion in humanoid robots. According to a Huaxi Securities research report, the Optimus uses 14 inverted planetary roller screws throughout its trunk. Combined with the increasing use of micro lead screws in dexterous hands, the bank estimates that lead screw components account for over 19% of the total value. This means that when humanoid robot production reaches 1 million and 5 million units, the corresponding market demand for planetary roller screws will reach 14.1 billion and 44.5 billion yuan, respectively.

In the automotive sector, with the continuous advancement of automotive technology, motor-driven screw solutions, where commands are transmitted to the execution layer via electrical signals, offer faster response times than traditional mechanical and hydraulic transmission solutions, meeting the real-time requirements of intelligent driving systems. Due to the advantages of high-end screws such as low latency, high precision, high transmission efficiency, and compact structure, motor-driven screw solutions have gradually become the mainstream choice in the automotive execution layer as vehicles become increasingly intelligent.

It is important to note that the performance of screws is based on extremely high process requirements and equipment barriers. Maintaining precision while improving efficiency is crucial for reducing costs and opening up new market opportunities. Specifically, there are three major barriers:

In terms of equipment, the high-precision characteristics of lead screws place high demands on these equipment. Currently, high-end processing equipment relies on imports, but overseas high-end grinding machines are expensive and have long procurement cycles.

In terms of processing, thread accuracy is critical, and processing options include rolling, grinding, turning, and milling. Nut internal thread processing is the core barrier, requiring a grinding rod to drive a grinding wheel into the nut with a limited diameter for grinding, which is extremely challenging. Heat treatment also requires extensive technical expertise and experience.

In terms of consistent mass production, the long-term demand for humanoid robots is expected to reach millions of units, placing high demands on the supply chain's mass production and consistency.

A "Bearing Veteran" Embarks on a New Path of Growth

As a long-standing company in the bearing industry, XCC.ZXZ (603667.SH) is accelerating its development of its lead screw business.

Bearings are XCC.ZXZ's core product, and lead screws are a technological extension of its bearing products, a key product in its new business transformation. To focus on developing lead screws and inverted planetary roller screws for new energy vehicles, the company has established a dedicated "Wire Drive Business Unit." Due to the shared technological roots between lead screws and bearings, XCC.ZXZ's entry into the lead screw business is technically feasible and offers significant advantages:

Technically, the company possesses four core technologies: simulation design, net forming of blanks, controlled atmosphere heat treatment, and precision grinding. This provides a comprehensive supply chain from materials to finished products.

In terms of talent, the company boasts a team of experienced domestic and international industry experts and professionals. Furthermore, in terms of process production, the company possesses a large number of technical personnel skilled in key processes.

Systemically, the company possesses the capacity for large-scale production, quality control, and the ability to iterate, upgrade processes, and reduce product costs.

In the first half of 2025, XCC.ZXZ will focus on increasing the production capacity of planetary roller screws and micro ball screws. The company has successively purchased a series of equipment for machining, cylindrical grinding, thread grinding, gear hobbing, and quenching. These equipment are expected to be delivered in the near future. During the capacity ramp-up period, the company will strengthen quality control for small-batch production and improve production efficiency by establishing a testing center and optimizing production processes.

According to the planned private placement on June 17, 2025, the company plans to raise no more than 1 billion yuan to invest in embodied intelligent robots and core automotive intelligent driving component projects. The project, with a construction period of three years, will produce 980,000 planetary roller screws, 2.1 million miniature ball screws, 70,000 sets of general-purpose robot bearings, 1 million automotive steering system screws, and 4 million brake and parking system screws annually upon reaching full production capacity.

In the new energy vehicle sector, electric cylinders are increasingly replacing traditional pneumatic and hydraulic cylinders. In recent years, XCC.ZXZ has proactively developed lead screw products for new energy vehicle steering, braking, transmission, and active suspension systems. The company has successfully developed key ball screw components for rack-type electric power steering (REPS), electronic hydraulic brakes (EHB), electromechanical brakes (EMB), and electronic suspension systems in new energy vehicles. The production line is now essentially complete, with orders secured for some products. Order production is expected to officially begin in the second half of this year.