ATLANTA, August 9, 2021 / PRNewswire / – Auto Industry Currently Under Regulatory Pressure to Reduce CO Emissions2 emissions per mile, sparking a massive shift in manufacturing to electric vehicles (EVs). The EV passenger car market is expected to experience robust growth globally over the next decade. However, just as supply chains transform to accommodate this transition, a potential shortage of minerals used in electric vehicle batteries is also on the horizon.
To help meet this new sourcing challenge and avoid a repeat of the impacts of the current chip shortage, Vertaeon offers its innovative cloud-based analytics tools to enable supply chain leaders to develop comprehensive assessments. of risks and mitigation processes, now. Vertaeon combines its proprietary and highly cost-effective SaaS platform with deep automotive industry experience to provide businesses with the business intelligence they need to navigate such tumultuous times.
“The imbalance created by the current chip shortage is a prime example of a perfect storm caused by the convergence of evolving market trends, superimposed on geopolitical tensions and post-pandemic demand surges,” said Rekha Menon-Varma, co-founder and managing partner of Vertaeon. “The chip shortage highlights the need for the automotive industry to have better visibility into suppliers and manufacturing partners, to gain a clear understanding of the volatility and gaps within their supply chains. While there is a huge amount of data available, many organizations have not. tapped into meaningful contingency planning for the next shortage. ”
Potential challenges of mineral supply
Key mineral concentrations for battery cells in China, South Korea and Japan can be risk factors in terms of geopolitical tensions, natural disasters and higher transport costs. The already identified negative environmental impact of upstream mining may also create future challenges, for example by exacerbating the drain on the water supply in South America. Such risk factors combined with the move towards the next generation of battery technology (potentially overtaking the rare mineral) could trigger a rapid shift in regulation and, ultimately, in the production of electric vehicles, with an emphasis on electric vehicles instead. hydrogen vehicles, for example.
From a raw material perspective, challenges include availability, cost, location concentration, and profitability. Some of the main issues related to raw materials:
- Lithium: an impending shortage due to economic, technical and mining sustainability considerations;
- Nickel: refinement issues and Asia offer cheaper alternatives; and
- Cobalt: ongoing conflicts in the Democratic Republic of Congo (DRC) and labor issues.
“The anticipated supply challenges underscore the need for comprehensive supply chain assessments to identify all risk factors and associated vulnerabilities,” said Menon-Varma. “One cannot navigate this rapidly changing environment without a holistic program that identifies risk factors relevant to their business to inform and develop contingency plans. Advanced analytics, combined with artificial intelligence (AI) and machine learning, is the perfect catalyst that can make a significant difference in a company’s ability to manage future crises. Being on top of market trends and dynamics is the “peace of mind” we provide to our customers. “
Vertaeon leverages strategy, operational expertise and technology to enable data analytics for supply chain and business risk assessment and due diligence for strategic initiatives. Founded as a consulting firm, Vertaeon has identified a critical market need and has successfully realigned as a SaaS data analytics provider in recent years. Vertaeon is a thought leader in this field and has launched enterprise risk analysis and supply chain solutions to promote sustainable operations and mitigate business risks. For more details, please visit us at https://www.vertaeon.com or follow us on LinkedIn.