Automakers are again embracing vertical integration, similar to the early days of the auto industry. Multiple manufacturers seek to control more of their supply chains for electric vehicles (EV), rather than relying on outside suppliers.
Tesla was among the first to insource more of its EV-battery making. General Motors said in December that it will invest in a new factory with Korean partner POSCO to produce cathode materials, a key component/cost driver for EV batteries. Volkswagen AG plans to build a similar cathode-material factory with Belgian firm Umicore. And Volkswagen and Stellantis recently cited deals to lock up lithium supplies, a metal with ideal electro-chemical properties for EV batteries.
Turn your supply chain into a core competency to outdo competitors. MOSIMTEC simulation modeling can help. Explore options virtually for in-sourcing, new sources/suppliers, ways to increase supplier/production capacity, options to reduce shipping cost/delays, and potential process improvements with ports and transporters. Assess options virtually in a sandbox environment to raise production/inventory, cut cost, enhance fluidity, reduce risk or meet other goals. MOSIMTEC industrial engineers/data scientists can help you futureproof your business. Learn about our supply chain related simulation work here: https://mosimtec.com/industries/logistics-supply-chain/
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Read more here: https://www.wsj.com/articles/gm-volkswagen-build-up-their-battery-supply-chains-amid-electric-vehicle-push-11641205981