OEM strategies for vertical integration in the battery value chain

Christian Huth, Kai Wittek and Thomas S. Spengler

International Journal of Automotive Technology and Management, 2013, vol. 13, issue 1, 75-92

Abstract: The electrification of the power train leads to fundamental changes in the automotive value chain. Of particular importance for OEMs is the determination of the degree of vertical integration in the battery value chain for electric vehicles. The question which parts of the battery should be manufactured in-house by OEMs and which should be sourced from suppliers is essential, since the battery has the highest value added in an electric vehicle. Our research analyses the strategies for the vertical integration in the battery value chain of 14 leading OEMs. Based on a comprehensive press and patent search, we identify four strategy archetypes with different degrees of vertical integration. Since the future market environment is uncertain, the optimal strategy cannot yet be determined.

Keywords: vehicle batteries; battery cells; battery packs; electric vehicles; battery value chains; value added; vertical integration; make-or-buy; OEM strategies; powertrains; automotive technology. (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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