The future of supply chains runs through the electric vehicle because it will be a mobility robot driven by a computer powered with AI. That future, however, depends on adoption. So we created the Vantage for you to see the globalized picture of EV supply chains and how they affect prices and your choices.

Takeaways

While headlines are replete with China’s dominance of the EV supply chain, it’s only a partial picture. A more holistic look at global suppliers shows that China’s dominance is mainly limited to LFP batteries, while the vast majority of midstream EV components have a much more globalized supply chain. This is largely driven by the geographic diversity of established auto industry suppliers that have long had global manufacturing operations.

The upstream picture, however, is different. China has a stronger grip on the processing of the eight upstream commodities vital to the EV power system, including the six commodities that are direct inputs for the battery. This reality makes it very difficult for EVs to qualify for the full IRA tax credit even if the batteries are produced, and the EVs are assembled, in America. These factors could well affect the pace of EV adoption.