The collaborative forum, set up by supply solutions experts CHEP, is helping the automotive industry move faster to develop a safe, efficient and sustainable Lithium-Ion battery supply chain.
As the world moves away from traditional fossil-fuel vehicles, Lithium-Ion batteries are becoming one of the most critical, and yet potentially dangerous, components in the Automotive supply chain.
The high-density batteries required for customer expectations of range are heavy, mainly produced in Asia, and very vulnerable to changes in temperature, mishandling and damage – which risk catastrophic explosive and toxic consequences. [Footnote 1] This has brought in costly and complex regulations for packing, storing and moving them, which are changing all the time.
But there are many other issues as well, such as threats to the supply of raw materials, the end of life management, recycling and disposal, the legal and insurance implications, and the profitability of Battery Electric Vehicle (BEV) powertrains (where the battery system can be as much as 80% of the cost) [Footnote 2].
All these challenges affect many different parts of the automotive supply chain and we will need a huge collaborative effort if the industry is to successfully, quickly, safely and cost-effectively move to producing more sustainable vehicles on a mass scale.
This is why the Battery in Focus Expert Group has been created- an initiative by global supply chain experts CHEP. It’s a working group and discussion platform that brings together leaders from all parts of the automotive industry and the transport supply chain, as well as outside specialists such management consultants and legal professionals.
There have already been ten of these expert group sessions, which happen approximately every three months, with high-level involvement from major OEMs, Tier suppliers, battery producers and many others.
Those who join in this unique collaboration will help prepare the way for the coming ‘EV revolution’, guiding how the industry evolves for a sustainable future, and could be part of defining the global standards for this new kind of logistics.
“The Battery in Focus Expert Group is already playing a vital role in the future of the EV supply chain. The breadth of the partnerships and collaboration, even among competing players, shows the benefits of working together to help define the way the industry’s future will develop. We’re delighted that we’re able to use CHEP’s unique position in the supply chain to help make this happen.” Sanjiv Takyar, Head of Innovation, Solutioning & Strategic Marketing, CHEP Automotive & Industrial Solutions.
Footnote 1: Royal Society of Chemistry Advances:
Thermal runaway of large automotive Li-ion batteries
Footnote 2: PWC – Powertrain Study 2020