Zirconium alloy spacing grid strips constitute critical structural components in pressurized water reactor fuel assemblies, where dimensional precision directly influences reactor safety and operational efficiency. The hexagonal close-packed crystal structure of zirconium alloys presents significant challenges in achieving the required blanking accuracy of ± 0.005 mm due to pronounced anisotropic deformation behavior and springback characteristics. This study establishes an integrated process-die system through finite element simulation, precision die manufacturing, and industrial validation. DEFORM-3D simulations identified optimal blanking parameters: single-side clearance of 0.035 mm (7.65% of sheet thickness) and 120 mm per second punch velocity, yielding 61.9% shear zone ratio and 0.023 mm dimensional deviation. A modular four-plus-one die structure incorporating AFA-2G and AFA-3G guide systems achieved ± 0.001 mm assembly accuracy. ASSAB 88 steel with double cryogenic treatment and TAC (tetrahedral amorphous carbon) coating extended single-regrind tool life to 2.0–2.5 million strokes and total tool life beyond 80 million strokes, representing a 4-fold improvement over uncoated dies and a 2.5-fold improvement over conventional DLC coatings. Industrial validation across 16,000 parts demonstrated a 98.6% pass rate with Cpk greater than 1.33, meeting the dimensional and process-capability acceptance criteria of the fuel manufacturer’s quality plan. Complete nuclear qualification of the finished assembly is outside the scope of this study.