Battery Cabinet Supplier Strategy

What are the different types of battery sourcing strategies?

S&P Global Mobility categorizes OEMs' battery sourcing strategy under four types: value chain integration, partnerships, system integration and outsourcing. S&P Global Mobility forecasts that sourcing under value chain integration, where the cell, module and pack are manufactured in-house, will increase from 16.7% in 2022 to nearly 21% in 2030.

What is the future of battery supply chain outsourcing?

During the same period, outsourcing is expected to fall from about 21% to less than 11%. OEMs are increasingly looking to balance the risk against the investment required to have a highly vertically integrated battery supply chain.

Is there a one-size-fits-all solution for battery demand?

Clearly, there is no one-size-fits-all solution for this. The three automakers had the highest demand for batteries (in GWh) in 2023 and will have the highest cumulative demand for batteries between 2022 and 2030. This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.

Are OEMs sourcing and vertical integration in the battery value chain?

The sourcing strategies at Tesla, BYD and VW show that OEMs will continue to have different approaches for sourcing and vertical integration in the battery value chain. Clearly, there is no one-size-fits-all solution for this.