Title: OEM strategies for vertical integration in the battery value chain

Authors: Christian Huth; Kai Wittek; Thomas S. Spengler

Addresses: Institute of Automotive Management and Industrial Production, Technische Universität Braunschweig, Katharinenstr. 3, 38106 Braunschweig, Germany ' Institute of Automotive Management and Industrial Production, Technische Universität Braunschweig, Katharinenstr. 3, 38106 Braunschweig, Germany ' Institute of Automotive Management and Industrial Production, Technische Universität Braunschweig, Katharinenstr. 3, 38106 Braunschweig, Germany

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.

DOI: 10.1504/IJATM.2013.052780

International Journal of Automotive Technology and Management, 2013 Vol.13 No.1, pp.75 - 92

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 22 Mar 2013 *

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