Automotive supply chains will undergo a radical transformation over the next decade as the internal combustion engine is phased out in favour of alternative propulsion systems. Although it is not yet completely certain which type of technology will win the race to replace petrol or diesel engines, it is clear that electric vehicles will play an important, even defining, role in the industry’s future. This will mean that the supply chain for the entire powertrain will be transformed and the types of components, the logistics processes employed to move them, the markets of origin and destination as well as the tiered character of automotive supply chains will almost certainly change.

This briefing analyzes the source of the materials used in this new supply chain; where value is added in the production process; where batteries are manufactured and assembled; and finally, how existing supply chains will be transformed.