Elon Musk confirmed on X that SpaceX will start manufacturing blades and vanes for natural-gas-fired power turbines at a planned foundry in Bastrop, Texas. Musk claims in-house casting could accelerate turbine deployment by up to 18 months, a potential game-changer for AI data centers hungry for power. The news sent shares of Howmet Aerospace down over 7% Monday, with Precision Castparts and DPC also hit, though Howmet and DPC partially rebounded Tuesday.

Howmet holds roughly half the global market share for gas-turbine components but derives only 11% of revenue from that segment, while DPC gets about 40% from gas turbines, making it more vulnerable. Analysts caution the threat remains remote: making single-crystal nickel superalloy blades requires extreme precision, with new lines often scrapping over half their output for extended periods. The process is highly secretive, with ceramic cores and wax destroyed to prevent reverse-engineering.

Specialized vacuum furnaces have lead times exceeding two years, and critical roles require six to 12 months of training. Morgan Stanley estimates a new factory would take at least four years. SpaceX likely aims to supply its own needs, including Raptor rocket engine turbopumps and xAI data centers, rather than become a merchant supplier.