The current trends disrupting the mobility industry highlight the importance of transparency for key automotive value chains such as semiconductors, batteries and green steel. For this purpose, the community created a toolkit that provides transparency in terms of demand/supply balance as well as regional consolidation and highlights strategic recommendations to address key industry risks through non-competitive collaboration.
Despite increased efforts, the shortages experienced in semiconductor node sizes most relevant for the automotive sector are projected to persist until 2026 and beyond. The automotive sector will need to focus its efforts towards building more resilient semiconductor supply chains.
The analysis of node supply vs. end-product customer demand for key node sizes at the current state and projections for 2026 have identified key gaps, while showing the strongest resilience in East Asia. These gaps, when not addressed, will affect automotive value chains.
As part of developing the toolkit, 10 key measures for the industry have been identified, which will allow the mobility sector to develop more resilient and sustainable semi-conductor supply chains, allowing to mitigate the effects of continued disruptions in global semi-conductor production.
Global demand for batteries is expected to soar over the next decade, with the number of GWh required increasing from about 700 GWh in 2022 to around 4.7 TWh by 2030. To avoid shortages, battery manufacturers must secure a steady supply of both raw material and equipment. They must also channel their investment to the right areas and execute large-scale industrialization efficiently.
As part of the toolkit, 10 success factors have been identified, to support the battery industry in achieving more resilient and circular value chains, paving the way for more sustainability.
The automotive industry is facing several pressures and incentives leading towards decarbonization. The key drivers being regulatory changes and growing demand for low-carbon steel as a result of aggressive scope 3 decarbonization and circularity targets in end-user segments. The automotive sector will need to focus its efforts towards building more resilient green steel supply chains.
Blast Furnace (BF) and Electric Arc Furnace (EAF) are the most common methods for steel production. Common end-use applications such as in the automotive sector are a high value segment and take up large share of total demand. For example, in North America the automotive sector represents 25% of total steel demand, second largest to construction (>40%).
As part of the toolkit, key challenges have been identified, the automotive industry will face in efforts to achieve more resilient and sustainable low carbon steel value chains.
As part of the toolkit, success factors have been identified, to support the automotive industry in achieving more resilient and sustainable low carbon steel value chains.
The Value Chain Toolkits have been developed as a point-in-time reference by the community under the auspices of the Forum in collaboration with McKinsey & Company Inc.