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Yeah there's no good way around it unfortunately. Using higher grade alloy steel adds cost, as does heat treating it. Best is to just add a proper nut, either loose or welded. But you can get un-plated weld nuts so at least you don't have to grind the plating off before you weld them. And 1/4" would be plenty thick if you're not cutting threads into it.They are mild steel. I didn't think it would be a problem so good catch. My goal is no loose nuts and I was hoping to skip the step of welding nuts to the plate.
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