Global automotive original equipment manufacturers (OEMs) are integrating backward into battery supply chains to hedge against price volatility in critical minerals. The move is central to achieving cost parity with internal combustion engine vehicles.
Localized Battery Production Accelerates
OEMs are committing billions to regional gigafactories located near final assembly plants. By mitigating international logistics overhead and leveraging regional tax incentives, manufacturers project a 12% reduction in per-unit pack assembly expenditures by late 2025.