The Electric Vehicle Supply Chain Ecosystem: Changing Roles of Automotive Suppliers

The Electric Vehicle Supply Chain Ecosystem: Changing Roles of Automotive Suppliers

13 February 2024 | Sandeep Jagani, Erika Marsillac, and Paul Hong
The automotive industry is undergoing a significant transformation due to the increasing adoption of Electric Vehicles (EVs). This shift has led to profound changes in the supply chain ecosystem, necessitating a reevaluation of the roles of automotive suppliers. This study investigates the transition of the automotive industry towards EVs and the subsequent changes in the supply chain, focusing on the evolving roles of suppliers. The research examines the impact of these changes on supplier relationships, collaboration with Original Equipment Manufacturers (OEMs), and the potential for new entrants to disrupt the market. It also proposes strategies for suppliers to navigate this transformation and maintain competitiveness in the EV landscape. The study highlights the opportunities and challenges in EV supply chain research. The EV supply chain ecosystem is a complex network involving raw material sourcing, battery manufacturing, vehicle assembly, and end-of-life management. It encompasses the entire lifecycle of an EV, from raw material extraction to vehicle use and servicing. The global EV market is projected to grow significantly, driven by advancements in technology, expanding charging infrastructure, and favorable government policies. The scale of the EV supply chain ecosystem is defined by its infrastructure and operations, including raw material extraction, battery manufacturing, vehicle design, parts suppliers, charging infrastructure, and sales networks. The transition from traditional internal combustion engine (ICE) supply chains to EV supply chains involves significant changes in power sources, battery technology, and manufacturing processes. The EV supply chain requires more efficient and higher-capacity batteries, advancements in battery recycling, and research into alternative materials. The supply chain processes include manufacturing, logistics, and workforce changes, necessitating new skills and adaptations. The supply chain outcomes encompass workforce changes, consumer demand, and satisfaction ratings, which are influenced by the availability of charging infrastructure and the performance of EVs. Comparing ICE and EV supply chains reveals key differences in innovation scope, market dynamics, raw materials, supplier roles, infrastructure, technology use, risk of disruption, and regulations. The EV supply chain is characterized by a broader scope for innovation, a growing market, and a reliance on materials like lithium and cobalt. The ICE supply chain is more mature, with established networks and suppliers, but faces challenges due to fluctuating commodity prices and geopolitical issues. The EV supply chain ecosystem is dynamic, with suppliers playing a crucial role in adapting to technological changes and market demands. The market is influenced by factors such as consumer preferences, government policies, and technological advancements. The study identifies different types of EV markets based on innovation impact and market transformation scope, highlighting the need for adaptability and resilience in the automotive industry. Research in the EV supply chain ecosystem presents both challenges and opportunities, requiring a multidisciplinary approach to address the complexities of the evolving market.The automotive industry is undergoing a significant transformation due to the increasing adoption of Electric Vehicles (EVs). This shift has led to profound changes in the supply chain ecosystem, necessitating a reevaluation of the roles of automotive suppliers. This study investigates the transition of the automotive industry towards EVs and the subsequent changes in the supply chain, focusing on the evolving roles of suppliers. The research examines the impact of these changes on supplier relationships, collaboration with Original Equipment Manufacturers (OEMs), and the potential for new entrants to disrupt the market. It also proposes strategies for suppliers to navigate this transformation and maintain competitiveness in the EV landscape. The study highlights the opportunities and challenges in EV supply chain research. The EV supply chain ecosystem is a complex network involving raw material sourcing, battery manufacturing, vehicle assembly, and end-of-life management. It encompasses the entire lifecycle of an EV, from raw material extraction to vehicle use and servicing. The global EV market is projected to grow significantly, driven by advancements in technology, expanding charging infrastructure, and favorable government policies. The scale of the EV supply chain ecosystem is defined by its infrastructure and operations, including raw material extraction, battery manufacturing, vehicle design, parts suppliers, charging infrastructure, and sales networks. The transition from traditional internal combustion engine (ICE) supply chains to EV supply chains involves significant changes in power sources, battery technology, and manufacturing processes. The EV supply chain requires more efficient and higher-capacity batteries, advancements in battery recycling, and research into alternative materials. The supply chain processes include manufacturing, logistics, and workforce changes, necessitating new skills and adaptations. The supply chain outcomes encompass workforce changes, consumer demand, and satisfaction ratings, which are influenced by the availability of charging infrastructure and the performance of EVs. Comparing ICE and EV supply chains reveals key differences in innovation scope, market dynamics, raw materials, supplier roles, infrastructure, technology use, risk of disruption, and regulations. The EV supply chain is characterized by a broader scope for innovation, a growing market, and a reliance on materials like lithium and cobalt. The ICE supply chain is more mature, with established networks and suppliers, but faces challenges due to fluctuating commodity prices and geopolitical issues. The EV supply chain ecosystem is dynamic, with suppliers playing a crucial role in adapting to technological changes and market demands. The market is influenced by factors such as consumer preferences, government policies, and technological advancements. The study identifies different types of EV markets based on innovation impact and market transformation scope, highlighting the need for adaptability and resilience in the automotive industry. Research in the EV supply chain ecosystem presents both challenges and opportunities, requiring a multidisciplinary approach to address the complexities of the evolving market.
Reach us at info@study.space
[slides] The Electric Vehicle Supply Chain Ecosystem%3A Changing Roles of Automotive Suppliers | StudySpace