Battery Procurement Strategies for New Energy Vehicle Manufacturers under the Dual-Credit Policy

Qingyu Zhang () and Wenbo Li
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Qingyu Zhang: Shenzhen University, Research Institute of Business Analytics and Supply Chain Management, College of Management

A chapter in Proceedings of the 2024 6th International Conference on Economic Management and Model Engineering (ICEMME 2024), 2025, pp 36-42 from Springer

Abstract: Abstract To promote low-carbon living, the Chinese government has introduced a dual-credit policy aimed at accelerating the development of China’s new energy market. As this market grows, core battery technology for new energy vehicles (NEVs) remains controlled by companies with independent R&D capabilities. This article examines a supply chain comprising two suppliers (one pure battery supplier and another providing both batteries and vehicles) and one NEV manufacturer to explore whether the dual-credit policy effectively stimulates the NEV market and how NEV companies lacking R&D capability should select their battery suppliers. Findings reveal that the dual-credit policy promotes R&D efforts in new energy technology by NEV companies; however, when credit prices are high, it may inadvertently hinder supplier R&D. Additionally, a dual-source procurement strategy maximizes the manufacturer’s profit.

Keywords: dual-credit policy; co-opetition; procurement strategy (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-690-1_5

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DOI: 10.2991/978-94-6463-690-1_5

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