Navigating transformative shifts in the automotive supply chain : building resilient and sustainable supply chains to adapt to EV-induced changes
Katajamäki, Chizuko (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024112630432
https://urn.fi/URN:NBN:fi:amk-2024112630432
Tiivistelmä
This study aims to identify the potential challenges and risks associated with the transition from internal combustion engine Vehicles (ICEVs) to battery electric Vehicles (BEVs) from the perspectives of European vehicle producers’ supply chain management. It explores the geographical distribution of suppliers, the structure of the BEV supply chain, and potential shifts in power dynamics between suppliers and automakers due to changes in demands for new types of components. Additionally, this study aims to explore ways to build a resilient supply chain for electric vehicles (EV) batteries, particularly addressing structural vulnerability and potential risks within the global supply chain. The study explores Finland's potential role as a key battery supplier to the European Union (EU) market, considering the country's stringent environmental policies and its extensive expertise in mining and the energy sector.
The study begins with the current market analysis and prospects of BEV in four key markets, namely the United States (US), China, the European Economic Area (EEA), and Japan. The study then delves into the fundamentals of the existing automotive supply chain for ICEVs, comparing them to the BEV supply chain structures. A supply chain risk analysis based on five external elements is conducted to seek solutions for building resilient supply chains in the following chapter.
The key takeaways of this study include significant dependency on China, easier market entry due to component modularization, and the necessity of overhauling the existing automotive supply chain, including the potential phasing out of current suppliers.
The study concludes by emphasizing the importance of multi-sourcing for key components and diversifying supply sources to achieve both carbon neutrality and supply chain resilience while mitigating supply risks. As one of the promising and viable solutions, the study proposes sourcing battery materials in Finland. Amidst the turbulence of comprehensive reform in the automotive industry, meticulous global coordination and the establishment of an agile supply chain are vital to overcoming environmental and economic challenges.
The study begins with the current market analysis and prospects of BEV in four key markets, namely the United States (US), China, the European Economic Area (EEA), and Japan. The study then delves into the fundamentals of the existing automotive supply chain for ICEVs, comparing them to the BEV supply chain structures. A supply chain risk analysis based on five external elements is conducted to seek solutions for building resilient supply chains in the following chapter.
The key takeaways of this study include significant dependency on China, easier market entry due to component modularization, and the necessity of overhauling the existing automotive supply chain, including the potential phasing out of current suppliers.
The study concludes by emphasizing the importance of multi-sourcing for key components and diversifying supply sources to achieve both carbon neutrality and supply chain resilience while mitigating supply risks. As one of the promising and viable solutions, the study proposes sourcing battery materials in Finland. Amidst the turbulence of comprehensive reform in the automotive industry, meticulous global coordination and the establishment of an agile supply chain are vital to overcoming environmental and economic challenges.