Resilient Supply Chains
Study results coincide with proposals of the Critical Raw Materials Act (CRMA)
In the new study "Resilient supply chains in the battery industry", a team of the accompanying research for the battery cell production funding measure of the Federal Ministry for Economics and Climate Action (BMWK) examined the supply situation with critical and strategic raw materials for the battery industry. The results of the study show: Self-supply with lithium, nickel and manganese could be significantly increased. Likewise, a diversification of the supply chains for these raw materials would be possible - in this way, the dependence on imports from individual third countries could be reduced. The central results are thus in line with the proposals of the Critical Raw Materials Act (CRMA) for dealing with raw materials in the European Union.
Europe currently has a strong dependence on imports of battery raw materials, as no raw materials needed for battery cell production are produced in significant quantities in Europe. Due to the increasing global demand for raw materials - caused by the demand of numerous industrial sectors - the supply of these raw materials will continue to tighten worldwide in the coming years. The study commissioned by the BMWK analysed the risks for the most important raw materials in the battery supply chains resulting from market concentration, country risk and demand/supply deficits. At the same time, it was investigated how large the European self-supply in the battery sector could be. The result: In the mining of lithium, nickel and manganese, a self-sufficiency of more than ten percent would be possible. Similarly, for these critical raw materials, it would be possible to divide up imports from third countries in such a way that no more than 65 percent of the Union's annual demand comes from a single third country. The benchmark of 65 percent is also mentioned in the current draft of the CRMA and is currently being discussed in the European Parliament. The central proposals of the CRMA, with which the EU wants to strengthen the supply of raw materials - especially critical and strategic raw materials - to the entire European economy, lead in the same direction: the share of self-supply is to be increased, imports diversified and the circular economy in the EU expanded.
Ecosystem and Value Chain
Battery production in Europe is of strategic interest to the economy and society.
Technology developments from Europe offer opportunities for the sustainable and environmentally sound production of batteries for electric vehicles and other applications. In addition, the development of a European ecosystem for battery cell production can contribute to positive economic growth, reduce supply dependencies, create more quality employment and thus mitigate challenges of structural change.
An Overview of the battery ecosystem: Structures, actors and drivers
Ecosystem Analysis Tool
To analyse the battery ecosystem in depth, the accompanying research team has developed a data-based tool that allows to visualise actors across all value creation stages of the battery ecosystem and their connections. The tool helps to analyse networking activities in research (F&D projects), value creation levels (joint ventures) and strategic activities (initiatives, networks...) and shows the degree of interconnectedness.
The findings of the accompanying research team are made available in publications and presentations at battery-related events and conferences.
Battery Ecosystem Database
The database contains more than 3,100 actors (industry, associations, RTOs etc.) with more than 370,000 connections (R&D projects, joint ventures etc.). Few key actors take on an interface function and establish connections between different parts of the ecosystem. Many actors are only well connected within institutionalised networks such as associations, but they lack connections to other parts of the ecosystem. There are valuable companies in the poorly connected, weakly integrated part of the ecosystem with specialised knowledge.
To learn more about the methodological background and data basis, download the study "Battery cell manufacturing ecosystem in Europe".
European Battery Value Chain
How does a battery work and what do we use it for? How is it re-used or recycled?
To explain the topic of batteries, to show what the IPCEI is doing to move it forward and to make the IPCEI ecosystem visible, we have created a web application full of battery knowledge.
Further information
- Electric Mobility | German Federal Ministry for Economic Affairs and Energy Key technology battery cell production
Ecosystem studies and market updates can be found here
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