Electric Vehicle Supply Chain Research Articles

Long-Term Leases vs. One-Off Purchases: Game Analysis on Battery Swapping Mode Considering Cascade Utilization and Power Structure

The electric vehicle industry faces intense competition and the sustainability problem. In order to obtain a differential competitive advantage, enterprises actively promote the battery swapping mode (BSM) to respond to cost pressures caused by the mismatch between demand and supply. Considering cascade utilization, the Stackelberg game models of electric vehicle supply chain under three different scenarios, in the secondary supply chain consisting of a battery manufacturer (BM) and a vehicle manufacturer (VM), were constructed, respectively. Additionally, then, through the contrastive analysis of differential power structures, the influence of power structures and related parameters on the optimal pricing strategy and enterprise profits of both parties in the supply chain were studied and compared. The conclusions show that the dominance of the supply chain determines the profit level of enterprises in BSM. Compared with VMs, the adoption of the BSM has provided BM greater profit growth. Secondly, the number of reserve batteries in the battery swapping stations and the revenue of cascade utilization are essential factors affecting the profits of battery swapping service (BSS), especially for VMs. In addition, setting a reasonable range for the pricing of BSS can achieve a win–win situation for both manufacturers.

Digital twin design and analytics for scaling up electric vehicle battery production using robots

As electric vehicle adoption accelerates and demand increases, the inability to produce batteries in sufficient quantities has emerged as a critical bottleneck in the electric vehicle supply chain. Given the impending climate change crisis, resolving this bottleneck is imperative to accelerate the transition to a zero-emission electric mobility future. One potential solution is the use of robotics for fast and cost-effective assembly of batteries at scale. This study proposes a three-stage digital twin design and analysis method to develop robotic workcells for fast and cost-effective assembly of electric vehicle battery modules. Using digital twin design and simulation, robotic assembly line configurations have been developed for battery module production at different scales. Digital twin analytics was used to evaluate and optimise the proposed robotic battery assembly system for speed and cost. Industrial automation experts were consulted to further improve robotic work cell layouts to minimise investment in robots. Because digital twins of robotic workcells have been used, the configurations of the battery assembly line, as designed and validated, are ready for immediate implementation. For practitioners, this study offers heuristic methods to determine the appropriate assembly line configuration, the required number of robots and humans, for a desired production volume. For researchers, this study outlines promising areas for future investigation.

Exploring the circular economy paradigm: A natural resource-based view on supplier selection criteria

The paradigm of circular economy and the transfer of its principles to supply chain management has recently received much attention from researchers and practitioners. Limited natural resources, governmental legislation, and social responsibility for environmental preservation are the main factors for the development of circular supply chains. Especially in the automotive industry, critical materials are used to produce electric vehicles, reinforcing the importance of circularity for the industry. As the first stage of the supply chain, suppliers have a considerable influence on creating self-sufficient production systems, and in the automotive sector, a low level of vertical integration is important. Therefore, selecting suppliers is an enabler for circular supply chains, but this decision is a complex process due to multiple, partly conflicting criteria. To contribute to the knowledge in this research area, this study applies a fuzzy decision-making trial and evaluation laboratory approach for supplier selection in a circular supply chain in a case study of electric vehicles. First, a set of criteria for supplier selection in circular supply chains was identified based on a literature review and was systematically categorized based on the natural resource-based view. Afterward, the criteria were assessed and refined by experts with a strong procurement background in the automotive industry. Second, the experts were interviewed for value collection, and finally, the mutual influence of the criteria was determined. The results show that the most important criteria for circular supplier selection in electric vehicle supply chains are environmental standards, environmental-related certifications, resource consumption, and waste generation. Regarding the natural resource-based view, short-term focused criteria addressing the capability of pollution prevention have a higher importance compared to long-term criteria that drive sustainable development. In addition, this study classifies the criteria into the categories of causes and effects, discusses the prominence of the criteria, and presents a strategic map showing the mutual influences of the criteria. The results contribute to the theoretical and practical discussion on circular supply chains by identifying the key criteria for circular supplier selection and providing decision-making support for procurement managers.

Optimal models for sustainable supply chain finance: evidence from electric vehicle industry

ABSTRACT Prior research studies sustainable supply chain (SC) management for the electric vehicle (EV) industry in which SC members have sufficient funds. However, many EV firms always face the problems of financial constraints, which lead to the importance and urgency for the research of sustainable SC finance. To address this new problem, we consider the members of the electric vehicle supply chain (EVSC) can be risk averse because of the financial risks from uncertain demands. The EV retailer has limited liability and can obtain loans through a bank or an EV manufacturer. We first address a base model in which the EV manufacturer invests in the green research and development (R&D) effort and investigate operational decisions and sustainable SC finance strategies for the EVSC and members. Using the real data from a top-four EV manufacturer in the world, we do a case study to verify the outcomes of the base model and find that the EVSC and members can derive higher profits with MF strategy for the most cases. Furthermore, we extend the base model to consider government subsidies and the EV retailer's service levels, and find that government subsidies and the EV retailer's service are beneficial to the EVSC.

Cooperation Modes between Competing Manufacturers in EV Supply Chain with Innovation-Driven Common Supplier

The competition and cooperation between automobile manufacturers and battery enterprises are an important topic concerned by electric vehicle supply chain management. This paper investigates the cooperation modes between competing manufacturers in the EV (electric vehicle) supply chain, under which the common supplier launches the innovation of the key component of EV to meet the demand of two manufacturers. Three cooperation modes between manufacturers, full cooperation, partial cooperation, and noncooperation, are established to depict the pricing decisions by the Stackelberg game. We find out that, when competition degree is small, it is more profitable to choose partial cooperation, while it is more advantageous to choose full cooperation when competition degree is high, and the manufacturer’s basic market demand is relatively small. Therefore, it is always preferred for the common supplier to expect noncooperation between manufacturers. Under the background that basic market demand ratio changes with competition degree between markets, it could be better for the whole supply chain when without cooperation or partial cooperation depended on the supplier power while it could be better for customers when full cooperation or partial cooperation depended on the competition degree between manufacturers.

Modeling potential impact of COVID-19 pandemic on global electric vehicle supply chain

SummaryThe on-going COVID-19 pandemic and consequent lockdowns cast significant impacts on global economy in the short run. Their impact on stability of global electric vehicles (EVs) supply chain and thus our climate ambition in the long run, however, remains hitherto largely unexplored. We aim to address this gap based on an integrated model framework, including assessing supply risks of 17 selected core commodities throughout the EV supply chain and further applying the supply constraints to project future EV sales until 2030. Our model results under three pandemic development scenarios indicate that if the pandemic is effectively contained before 2024, the global EV industry will recover without fundamentally scathed and thus can maintain the same growth trend as in the no-pandemic scenario by 2030. We suggest that fiscal stimulus in the postpandemic era should be directed more toward upgrading the quality of battery products, rather than expanding the production capacity.

(Invited) The Sustainability of Lithium-Ion Batteries - from Mine to Cells

Are batteries in electric vehicles a panacea for some of our climate woes? On the surface EVs seem to be clean. Zero emissions from the tailpipe. They can (theoretically) run on energy derived from renewable sources. It is estimated there will be 10 to 20 times more electric vehicles on the road by 2030. Perhaps more, as many governments are mandating their use. This might seem to be a very positive development. But the answer to the question above is “Emphatically NO!” Here’s why: batteries are a very dirty business. Battery companies strive to make higher-energy batteries (more Watt-hours) at a lower and lower cost ($/Wh). Materials development has proceeded at a great pace for the past several years. More energetic materials are developed and produced at a lower cost. Little thought (certainly only a little action) is given to the sustainability of the battery industry. With 1000% growth expected over the next 10 years, the battery industry could get very dirty. Most consideration goes to the middle of the battery supply chain: precursors and battery materials. The back-end of the battery supply chain, mining, smelting, and making precursors are decidedly dirty and use a lot of fossil fuel for mining and transport, process water and chemicals, and have significant waste streams. The goal must be to create a long-term sustainable supply of critical raw materials for battery materials production, thus creating an efficient battery electric vehicle supply chain. This paper looks at the processes and improvements to the mining and development of battery raw materials such as cobalt, Class 1 nickel, manganese, copper, aluminum, phosphorous, and fluorine. There is a detailed examination of pre-treatment technology for nickel and cobalt to prepare the materials to the requirement of nickel-rich cathodes. These developments discussed are a major step towards sustainable battery material production, which car manufacturers and customers are demanding. Figure 1

Analyzing challenges for sustainable supply chain of electric vehicle batteries using a hybrid approach of Delphi and Best-Worst Method

Due to global warming and fast depletion of fossil fuels, the option of battery-operated electric vehicles (EVs) has emerged as one of the most popular alternatives for sustainable transport. In the present study, India is considered as a case country to explore the challenges in sustainable supply chain of electric vehicle batteries. India, being the second most populated country after China and having limited reserves of fossil fuels, has great potential to excel in electric vehicle supply chains. In addition, growth of electric vehicle markets in India is in the emerging phase. With increasing demand for EVs, the industry is facing many challenges for sustainable supply chain of electric vehicle batteries. The lithium-ion battery is a major component of electric vehicles. Many challenges for sustainability of electric vehicle battery supply chains have been extracted through literature review and discussions with industry experts. These challenges may be categorized as operational, technological, economic, environmental and social. Delphi technique is utilized to finalize major challenges for analysis. For further prioritization of these challenges, Best-Worst Method (BWM) is used. Finally, findings of the BWM are validated through an empirical study by collecting responses from 87 respondents. It is observed that ineffective recycling and reuse of batteries, disposal of batteries, and insufficient charging infrastructure are the three most important challenges in EV battery supply chain in India. The findings may be equally relevant in many developing countries having similar technological and infrastructure constraints. It will help policymakers in developing strategies for sustainable transport systems in developing countries.

Fuelling a Strong Automotive Future

The UK automotive sector is showing positive growth signs as it emerges from the pandemic and there is plenty of cause for optimism, with production on the rise and investment being made in a raft of projects to fuel the future electric vehicle supply chain

A Game-Theoretic Analytical Approach for Fostering Energy-Saving Innovation in the Electric Vehicle Supply Chain

Motivated by the industrial observation that electric vehicle (EV) manufacturers are often fully or partially outsourcing some specific components, for instance, powertrains and battery systems, and rely on their suppliers’ energy-saving innovation to improve their own EVs’ comprehensive performances, this study builds an analytical framework to investigate how different cooperation modes affect the EV supply chain’s energy-saving performance and firms’ profitability. As a main barrier preventing potential consumers from purchasing EVs, the consumer range anxiety for EVs’ performance was incorporated into the analytical model. Three primary cases and one strategic alliance case are sequentially analyzed. The results show that the supplier always self-motivates to implement energy-saving innovation to improve the performance of the core component, and the EV manufacturer is always willing to participate in its supplier’s energy-saving innovation by sharing a fraction of the investment. Moreover, a strategic alliance between the manufacturer and the supplier can effectively improve the profit of the whole supply chain. This strategic alliance can be coordinated through a generalized Nash-bargaining mechanism.

A Two-period Game Theory Model in Subsidizing the Electric Vehicle Supply Chain with Used Electric Vehicle Batteries Remanufacturing Process

Electric vehicle batteries are usually retired when the performance drops to about 70% of factory performance. At this point, they can be remanufactured into raw materials for the production of new batteries. This paper studies a two-period vehicle supply chain consisting of government, an electric/gasoline vehicle manufacturer, a EV battery manufacturer and consumers with and without retired batteries’ remanufacturing process. The purpose is to understand government subsidy policy in these two different periods. By adopting Stackelberg game theory and Nash equilibrium, a mathematical model was developed. The study gives the optimal subsidy with and without battery remanufacturing process in different two periods. We also consider the quality and recycling rates of retired batteries, as well as the impact of raw material costs for new batteries and government environmental spending on subsidies and commodity prices such as vehicles and batteries. Meanwhile, the results show that government subsidy to EV manufacturers can be reduced when retired battery remanufacturing process exists. Increasing in retired batteries’ quality, recycling rates, and the cost of raw materials for new batteries will lead to a reduction in government subsidies; but a rising of government spending on environmental protection will lead to the need for more subsidies to electric vehicle manufacturers.

Implementation of Hybrid Blockchain in a Pre-Owned Electric Vehicle Supply Chain

Ecumenical carbon dioxide (CO <sub xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</sub> ) emission emanates from car, bus, taxi, and motorcycle is around 45%. Electric vehicle could be the major contributor to abbreviate the pollution level in a transportation sector. According to the Forbes report the ecumenical passenger electric vehicle demand expected to reach 15% in 2025, and 23% in 2030. This research provides a blockchain predicated solution for a pre-owned electric vehicle market that could engender a trust, transparency, immutable records, and an efficient way to track the entire life cycle of a futuristic electric vehicle supply chain. At present most of the pre-owned electric conveyance purchase transpires through the third-party accommodations, websites, and mobile applications. This does not provide the authentic information on electric conveyance history, charging capabilities of the battery, history of the charging records, and performance of the driver (wear and tear affect battery life). Our solution implemented utilizing hybrid blockchain technology. Each stakeholder assigned with the Ethereum blockchain address to track the vehicle records as a distributed ledger. This design considered electric vehicle manufacturer, charging station, battery manufacturer, road convey ascendancy as major stakeholders. Astute contract designed with solidity programming. Truffle platform used to deploy keenly intellective contract in private blockchain that ascertain the privacy of electric conveyance owners and other stakeholders. Meta mask a mobile application utilized kovan network for tracking vehicle in a public blockchain. This application tested with 0.1 Ether for each transaction. Blockchain Electric Vehicle Cloud of Things (BEVCoT) concept proposed to integrate the IoT-Blockchain application in a cloud environment.

The vertical cooperation and pricing strategies of electric vehicle supply chain under brand competition

This paper considers an electric vehicle supply chain composed of a battery supplier, a well-known brand manufacturer (Manufacturer A) and an ordinary brand manufacturer (Manufacturer B). Three strategies are studied, namely, the noncooperative strategy (hereafter “Strategy N”), the cooperation strategy between the battery supplier and Manufacturer A (hereafter “Strategy S-A”), and the cooperation strategy between the battery supplier and Manufacturer B (hereafter “Strategy S-B”). Under these strategies, we investigate the optimal sales prices of the battery and electric vehicles of the two brands. We then analyze the impacts of brand effect on the demands of the two electric vehicles and the profits of all enterprises. The theoretical and numerical analyses present some valuable findings. First, Strategy S-A improves the demand and the profit of Manufacturer A, but reduces the demand and the profit of Manufacturer B; inversely, Strategy S-B increases the demand and profit of Manufacturer B, but decreases the demand and profit of Manufacturer A. Under Strategy S-B, the total demand for the two brands of electric vehicles is the largest. Second, Strategy S-A can intensify price competition, while Strategy S-B can weaken price competition between the two manufacturers. Third, when the degree of brand difference is relatively low, or the ratio of Manufacturer A’s bargaining power to Manufacturer B’s bargaining power is high, the battery supplier’s profit under Strategy S-B is the highest; otherwise, the battery supplier can obtain the highest profit from Strategy S-A. Finally, vertical cooperation strategies do not always improve the overall profitability of the supply chain.

Improvement strategies of battery driving range in an electric vehicle supply chain considering subsidy threshold and cost misreporting

This paper investigates a two-stage supply chain consisting of a battery supplier (BS) and an electric vehicle manufacturer (EVM). Considering consumers’ sensitivity to the battery driving range, the BS can improve the driving range level by investing, and obtain subsidies if the driving range level exceeds the subsidy threshold set by the government. Meanwhile, the BS may misreport his private information of the investment cost to the EVM. We mainly examine the effect of cost information misreporting and how the BS determines the optimal improvement strategy when the subsidy threshold increases. Firstly, a low (high) subsidy threshold makes the BS raise the driving range level above (below) the subsidy threshold; when the subsidy threshold is moderately raised, the choice of the improvement strategy is controlled by both the degree of raising the subsidy threshold and the technical upper limit. Secondly, participants may show different preferences for the improvement strategy under certain conditions. Finally, cost information misreporting brings adverse effects to participants and reduces the driving range level.

Risk assessment of electric vehicle supply chain based on fuzzy synthetic evaluation

In recent years, electric vehicles have witnessed rapid development. However, with the characteristic of numerous complexity links, there are many uncertainties exist in the supply chain which will cause high risks to the electric vehicles. Thus, carrying out a risk assessment is essential for the supply chain. The purpose of this paper is to identify and assess the potential risk factors for China's electric vehicle supply chain under uncertain circumstance. Firstly, this paper establishes a risk assessment index system for electric vehicle supply chain, which consists of three aspects and associated 15 indexes. Secondly, a combined hesitant fuzzy linguistic term set with fuzzy synthetic evaluation is developed. Thirdly, the risk assessment on China's electric vehicle supply chain is conducted. The results show that the risk level of the electric vehicle supply chains in China is between “general” and “high”. And the technical aspect and market aspect should be noted, mainly involving the information sharing risk and the assembly line setting risk. This paper can help managers of electric vehicle supply chain not only identify potential risks but also develop appropriate risk prevention measures.

Managing resource dependencies in electric vehicle supply chains: a multi-tier case study

Purpose The purpose of this paper is to investigate dependencies that arise between companies during the ramp-up of production volume in the electric vehicle (EV) supply chain. Design/methodology/approach An inter-company case study method has been used. Data were collected via tours of manufacturing plants, workshops and interviews from multiple tiers in a supply chain, namely, a niche EV manufacturer, as well as two of its tier-one suppliers and five of its tier-two suppliers. Findings As production volumes increased, a more relational approach was found to be necessary in inter-company relationships. The authors’ research showed that key suppliers, in addition to providing the parts, pursued a supply chain orchestrator’s role by offering direct support and guidance to the niche EV manufacturer in designing and executing its development plans. Research limitations/implications The resource dependence theory (RDT) is used to analyse and explain the changing dependencies throughout the planning and execution of production ramp-up. Practical implications This study will help supply chain managers to better manage resource dependencies during production ramp-up. Originality/value This study explores dependencies during the early stages of the production ramp-up process in the EV sector, which is in itself in the early stages of evolution. RDT is used for the first time in this context. This study has moved beyond a simple dyadic context, by providing empirical insights into the actions taken by an EV manufacturer and its suppliers, towards a multi-tier supply chain context, to better manage resource dependencies.

Subsidising an electric vehicle supply chain with imperfect information

This paper studies a four-echelon vehicle supply chain consisting of government, an electric/gasoline vehicle manufacturer, a retailer and consumers. The purpose is to understand how government subsidies should be allocated in order to maximise total profit of the whole supply chain. By adopting Stackelberg game theory based on conditions of imperfect information, a mathematical model was developed. The results suggest that allocation of a subsidy in the electric vehicle supply chain should first be allotted for electric vehicle customers. Specifically, in the early development stage, if the subsidy budget is limited, all of them should be given to the purchasers of electric vehicle customer. With an increasing budget available for subsidies, more allocation to the electric vehicle manufacturer is expected. However, more subsidies does not necessarily lead to more electric vehicle purchases as there is a ceiling on the market for electric vehicles. In the later development stage, subsidies may not be important in promoting electric vehicle uptake.

Game-Theoretic Analysis of Price and Quantity Decisions for Electric Vehicle Supply Chain Under Subsidy Reduction

To avoid the negative effects of electric vehicle (EV) subsidies, the Chinese government has launched an EV subsidy reduction policy, resulting in market uncertainty for EV supply chains. We study the optimal decisions of EV manufacturers and EV sellers by considering the subsidy reduction policy and stochastic demand of the EV market. We develop a newsvendor game model of a two-stage EV supply chain, and analyze how four factors—the degree of subsidy decline, the level of research and development (RD (2) The key factors for stimulating the development of the EV market are the RD (3) Improvement in EV market demand will increase market competition and market vitality; (4) The two decision maker-framework under centralized decision making is more advantageous to the popularization and development of EVs. When centralized decision making is difficult, a coordinated strategy under decentralized decision making can yield the same results as centralized decision making.

Study on Chinese and European automotive R&D – comparison of low cost innovation versus system innovation

Chinese carmakers are leapfrogging innovation by levering electric vehicle propulsion technologies and providing low cost solutions. This has become a severe threat for mature global players. On the other hand, European premium carmakers have been able to increase their penetration in emerging markets. Even though premium cars yield higher costs of innovation and offer few possibilities to achieve scale effects, sales have skyrocketed to a record high in 2011. In both cases, manufacturers who can innovate best will emerge as winners in lucrative and expanding markets - regardless of origin or innovation approach. The aim of this paper is to outline disruptive innovation patterns of the Chinese automotive industry and to showcase the system integration capabilities of European carmakers. The paper commences with “the China Price” advantage that plays a vital role for Chinese carmakers to leapfrog technology gaps. It allows offering innovation at low cost. Also, the local electric vehicle supply chain, government supportiveness and behavior of emerging consumer groups drive growth for new technologies such as electric vehicles in China. Next, the European car industry is characterized with the evolution of key innovations coming to a large extend from German premium carmakers. Consequently, the paper shows how their global success and innovation dominance in the premium segment can be linked to their integrated R&D approach. This comprises system development, modularity concepts, in-house R&D value chain, rigorous planning processes and so forth. In summary, the paper analyses key trends in innovation patterns from the Chinese and European car industry. Furthermore, it shows related market drivers such as regulatory development and consumer behavior. At last, a generic model for new product development is used to compare automotive R&D approaches between China and Europe. The authors conclude with their findings on comparing low cost innovation versus system innovation based on Chinese and European automotive R&D.

Extending simultaneous engineering: electric vehicle supply chains and new product development

Regulatory efforts, notably in the USA, have seen renewed interest in the development of electric vehicles. The innovation and technology demands of these products have necessitated the involvement of a range of technology suppliers that extend beyond existing networks in the automobile industry. This paper explores these emerging relationships by describing the regulatory framework and analysing the role of suppliers in the leading electric vehicle programs. The paper concludes that existing simultaneous engineering and supply chain management approaches have been extended and that these new structures could become more common as environmental pressures increase.