Title: 
Headings:  The Supply Chain for Electric Vehicle Batteries
Journal
 
of
 
International
 
Commerce
 
and
 
Economics
 

The
 
Supply
 
Chain
 
for
 
Electric
 
Vehicle
 
Batteries
 

Abstract
  

Introduction
 

The
 
Importance
 
of
 
Batteries
 

Structure
 
of
 
the
 
Electric
 
Vehicle
 
Battery
 
Supply
 
Chain
 

Battery
 
Cell
 
Composition
 
and
 
Manufacturing
 

Battery
 
Modules
 

Battery
 
Packs
 

Lithium-ion
 
Batteries:
 
Chemistry
 
and
 
Sources
 
of
 
Materials
 

Battery
 
Manufacturing
 
Competition
 

International
 
Trade
 
in
 
Batteries51
 

Electric
 
Vehicle
 
Battery
 
Value
 
Chain
 
Estimation
 

Conclusions
 

Bibliography
 


Content: According
 
to
 
a
 
2018
 
Morning
 
Consult
 
survey,
 
only
 
23
 
percent
 
of
 
adults
 
believe
 
gasoline
 
will
 
power
 
a
 
majority
 
of
 
motor
 
vehicles
 
in
 
the
 
year
 
2050,
 
while
 
44
 
percent
 
believe
 
the
 
majority
 
will
 
be
 
powered
 
by
 
electricity.2
 
EV
 
sales
 
rose
 
sharply
 
from
 
2013
 
to
 
2017,
 
and
 
these
 
sales
 
will
 
likely
 
grow
 
further
 
as
 
EV
 
investment
 
and
 
government
 
support
 
increase
 
and
 
EV
 
costs
 
decline. According
 
to
 
the
 
2018
 
IEA
 
Global
 
Electric
 
Vehicle
 
Outlook,
 
new
 
registrations
 
of
 
EVs
 
increased
 
from
 
111,320
 
in
 
2013
 
to
 
750,490
 
in
 
2017,
 
a
 
575-percent
 
increase. Still,
 
they
 
accounted
 
for
 
only
 
0.8
 
percent
 
of
 
global
 
vehicle
 
sales
 
in
 
2017.3
 
At
 
the
 
same
 
time,
 
EV
 
prices
 
have
 
fallen
 
significantly. Analysts
 
predict
 
that
 
some
 
sizes
 
of
 
EVs
 
will
 
achieve
 
cost
 
parity
 
with
 
internal-
combustion-engine
 
(ICE)
 
vehicles
 
by
 
2024
 
or
 
2025,
 
and
 
all
 
EVs
 
will
 
do
 
so
 
by
 
2030
 
(assuming
 
no
 
significant
 
increases
 
in
 
material
 
prices).4
 
For
 
these
 
reasons,
 
as
 
well
 
as
 
the
 
availability
 
of
 
tax
 
incentives
 
and
 
other
 
policy
 
inducements,
 
passenger
 
vehicle
 
manufacturers
 
have
 
invested
 
substantially
 
in
 
EVs,
 
spending
 
billions
 
of
 
dollars
 
on
 
related
 
research
 
and
 
development
 
and
 
offering
 
new
 
models. While
 
two
 
Tesla
 
models
 
(the
 
Model
 
S
 
and
 
Model
 
X)
 
accounted
 
for
 
nearly
 
one-half
 
of
 
all
 
U.S.
 
EV
 
sales
 
in
 
2017,
 
many
 
other
 
brands
 
compete
 
as
 
well. Table
 
1
 
lists
 
the
 
10
 
models
 
with
 
the
 
most
 
sales
 
in
 
2017. These
 
10
 
models
 
accounted
 
for
 
94
 
percent
 
of
 
2017
 
U.S.
 
EV
 
sales. The
 
table
 
also
 
lists
 
the
 
assembly
 
location
 
of
 
each
 
model
 
as
 
well
 
as
 
the
 
battery
 
size,
 
battery
 
manufacturer,
 
location
 
of
 
battery
 
pack
 
assembly,
 
and
 
location
 
of
 
cell
 
production. Six
 
of
 
the
 
10
 
models
 
are
 
assembled
 
in
 
the
 
United
 
States,
 
as
 
are
 
7
 
of
 
the
 
10
 
batteries
 
that
 
power
 
the
 
vehicles. But
 
only
 
four
 
of
 
the
 
batteries’
 
cells
 
are
 
produced
 
in
 
the
 
United
 
States.