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OEM strategies for vertical integration in the battery value chain

Author

Listed:
  • Christian Huth
  • Kai Wittek
  • Thomas S. Spengler

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.

Suggested Citation

  • Christian Huth & Kai Wittek & Thomas S. Spengler, 2013. "OEM strategies for vertical integration in the battery value chain," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 13(1), pages 75-92.
    • Handle: RePEc:ids:ijatma:v:13:y:2013:i:1:p:75-92
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    Citations

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    Cited by:

    1. Alessandra Perri & Daniela Silvestri & Francesco Zirpoli, 2019. "Technology evolution in the global automotive industry: a patent-based analysis," Working Papers 04, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    2. Marina Flamand, 2016. "Studying strategic choices of carmakers in the development of energy storage solutions: a patent analysis," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 16(2), pages 169-192.
    3. Huth, Christian & Kieckhäfer, Karsten & Spengler, Thomas Stefan, 2015. "Make-or-buy strategies for electric vehicle batteries—a simulation-based analysis," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 22-34.

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