The value chain for EVs

Investigator

• Keith Head

Background

With global ambitions to transition from fossil fuels to electric vehicles (EVs) by 2030 or 2035, efficient battery supply chains become crucial due to batteries constituting over 40% of EV costs. Government interventions worldwide, such as the US Inflation Reduction Act and European counter-policies, alongside significant investments by countries like Canada, are shaping the EV value chain dynamics. These interventions address the challenges posed by China's lead in the EV industry, cost advantages, and logistical issues related to the heavy and bulky nature of batteries and EVs.
 

Research Objectives

This project seeks to construct a quantitative model of the EV value chain to analyze the effects of policies on production locations and sales distribution. It aims to explore the potential spatial patterns of the EV value chain without government intervention, assess the impact of policies like the IRA, and examine the implications of a possible subsidy war between the US and Europe. The study will quantify the trade-offs between environmental benefits and the costs of subsidy conflicts, contributing to informed policy-making for sustainable transitions.