Towards a resilient battery supply chain Strategies and enablers for managing vulnerabilities and enhancing resilience for a Swedish Automotive OEM

Abstract

The automotive industry is characterized by highly competitive environment that is rapidly developing. One of the most current innovative drivers is electrification, which has shifted the focus from internal combustion engines to electric motors as the main propulsion technology. The demand of electric vehicles is rapidly growing and the European automotive industry must adapt accordingly to follow the electrification journey. Also, the success of this transition is heavily dependent on the availability of batteries as the energy storage system that powers electric motors, as well as their corresponding raw materials and required manufacturing processes. Ensuring these crucial factors is therefore an aim that OEMs strive for since it is essential for remaining competitive in the automotive industry. However, there are vulnerabilities in the battery supply chain that inhibits the secure supply of batteries for electric vehicles and instead contributes to a fragile supply chain that is susceptible to disruptions. One way to counter this issue it is to increase the level of supply chain resilience through identifying the relevant supply chain vulnerabilities, addressing them through supply chain resilience enablers and shaping supply chain resilience strategies accordingly. To aid in this endeavor, this thesis explores two battery supply chains that a Swedish automotive OEM is interested in. Through literature reviews, a case study, internal validation sessions, interviews with external industrial experts and a workshop, this thesis concluded that there are seven battery supply chain vulnerabilities, of which five were of main interest, and seven supply chain resilience enablers that formed three battery supply chain resilience strategies. The strategies can be considered to, in line with the theoretical framework of supply chain resilience, increase preparedness for potential disruptions, being able to respond promptly during disruptive events and having the ability to recover from disruptions. Furthermore, this thesis proposes four key propositions to support the OEM in enhancing battery supply chain resilience. Firstly, it suggests evaluating the current state of battery supply chain resilience. Secondly, the OEM should consider implementing the identified strategies, either partially or in full. Thirdly, the potential impact of these strategies should be highlighted. Finally, a roadmap for the implementation of the strategies should be created. By following these recommendations, the OEM can strengthen its battery supply chain resilience.