OEMs (Original Equipment Manufacturers) Battery Sourcing Strategies
OEMs handle battery sourcing strategies through various methods, each designed to optimize supply stability, cost efficiency, and technological advancement. Here are some of the typical strategies employed by OEMs:
1. Value Chain Integration
OEMs may integrate different parts of the battery supply chain, such as manufacturing cells or modules, to ensure a secure supply. This approach can help reduce reliance on external suppliers and potentially lower costs over time.
2. Partnerships and Joint Ventures
Some OEMs form partnerships or joint ventures with major battery suppliers to stabilize their supply and share financial risks. This approach allows OEMs to benefit from the expertise and priority supply of their partners, reducing the need for substantial in-house investment in battery technology.
3. Subsidiary Model
Having a battery pack subsidiary can help OEMs diversify their cell sourcing strategies and secure supply without the full costs associated with cell research and production.
4. Purchase of Part-Complete Products
OEMs can purchase finished or part-complete battery packs from suppliers to leverage the latest technologies without heavy investments in assembly facilities and research.
5. Diverse Suppliers and Supply Chain Integration
Maintaining relationships with multiple suppliers can provide a balanced and secure supply chain. This strategy allows OEMs to manage risks by diversifying sources and integrating more closely with their supply chain partners.
6. Sustainability and Simplicity
OEMs also aim to balance security with sustainability and simplicity in their sourcing strategies. This involves standardizing battery designs, reducing complexity, and promoting environmentally sustainable practices throughout the supply chain.
Each of these strategies helps OEMs navigate the evolving battery market, ensuring they can meet demand while managing the costs and complexities associated with EV battery production.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-oems-typically-handle-battery-sourcing-strategies/
