Opinion Paper: How electric vehicles are redefining value creation and supply chains for carmakers.
Make or buy your battery? Principally as a response to CO2 emissions regulations, for quite some time now, OEMs have been investing considerable resources in developing electric vehicles. Yet interest among potential customers remains lukewarm: development of infrastructure for charging is very slow, prices remain high, and the range of the vehicles still leaves much to be desired. On this last point, car manufacturers are facing a decision: do they buy in lithium batteries from established suppliers or start manufacturing batteries themselves (even if this is not part of their core competences)? What degree of vertical integration should car companies be striving toward in order to retain as much value creation as possible? The aim of our opinion paper is to start discussion of this topic.