Discussing EV Battery Supply Chains and Their Vulnerabilities

Watch this video to see CMU Engineering's Jeremy Michalek and Anthony Cheng discuss supply chains of critical materials used in EVs and China's dominant role in multiple stages of it.

Transcript

00:00:07 [Jeremy Michalek] As we transition from  gas-powered to electric vehicles over   the coming decades, the materials we need to  acquire from global supply chains are shifting. That means supply disruption  vulnerabilities are also changing. Unlike oil, if the material supply for making  EV batteries were disrupted, it would delay   new vehicle production, but it wouldn’t stop the  economy from using the vehicles we already have. We need to understand these  evolving vulnerabilities so   that we can make strategic decisions. [Anthony Cheng] We studied the supply  chains of critical materials used in   electric vehicle batteries, including  lithium, cobalt, nickel, and manganese. China currently plays a dominant role  in multiple stages of this supply chain,  

00:00:51 from materials refining to the production  of cathodes, batteries, and EVs. If China’s exports were restricted,   most of the global supply for  battery materials would be disrupted. This would affect some EV battery  chemistries more than others. [Michalek] The US Inflation Reduction Act, passed in 2022,   provides major incentives to  shift these supply chains. Already there have been hundreds of new   developments in North America,  primarily in manufacturing. The total credits available  actually exceed the cost   of making EV batteries. But it’s  hard to qualify for all of them.

00:01:27 Only EV batteries made entirely without  China are eligible for the largest credits,   which isn’t easy, given China’s dominant  role throughout the supply chain. Will these incentives succeed in diversifying  the supply chain and reducing risk, or will   automakers just dodge the restrictions by  leasing vehicles instead of selling them? Stay tuned as we watch this  issue at Carnegie Mellon.