Structural characteristics and disruption ripple effect in a meso-level electric vehicle Lithium-ion battery supply chain network

Abstract

Lithium-ion batteries (LIBs) have attracted widespread attention due to their crucial role in determining the performance of electric vehicles (EVs). The global EV LIB supply chain network is susceptible to disruptions as the activities of relevant firms are increasingly international, intricate, and interdependent. Existing research on the disruption risks in the EV LIB supply chain network is limited, and the detected threats rely on macro-level analyses of international trade data. To fill this gap, this study constructs a meso-level EV LIB supply chain network based on the supplier-buyer relationship data of significant EV LIB firms from 2016 to 2020. The hidden disruption risks are investigated regarding supply chain network structural characteristics and disruption ripple effects. First, the evolution of critical structural characteristics of the EV LIB supply network is presented to identify the systematic disruption risks. Second, the scale and persistence of the disruption ripple effect in two realistic scenarios, i.e., single-firm disruption and interfirm transaction breakdown, are dynamically assessed. The results show that the global EV LIB supply chain network has a hub-and-spoke structure with a “robust yet fragile” characteristic and is dominated by focal battery manufacturers from China, Japan, and South Korea. In addition, hidden risky sources among EV LIB firms and interfirm transactions are identified. The results can support EV LIB-related firms by better understanding the supply chain network characteristics to cope with the ripple effects of disruptions.