Strategic Onshoring of Battery Production Networks

Why It Matters

Understanding the complex, cross-border networks and state interventions in battery production is crucial for designers and engineers involved in the energy storage sector. It highlights the importance of supply chain resilience, geopolitical considerations, and national industrial strategies in material sourcing and manufacturing decisions.

Key Finding

The UK is strategically building its domestic battery production by connecting global resource supply chains with national manufacturing and innovation capabilities, guided by government policy and international competition.

Key Findings

• The UK is actively pursuing onshoring of lithium-ion battery production, driven by geopolitical ambitions and a focus on green industrial transformation.
• The onshoring process involves the strategic assembly of diverse capacities, including mineral sourcing, R&D, manufacturing, and green finance, often requiring the state to 'couple' regional assets with global production networks.
• Geopolitical factors, such as the UK's exit from the EU, significantly influence the formation and restructuring of these battery production networks.

Research Evidence

Aim: How do geopolitical factors and state-led initiatives shape the onshoring of lithium-ion battery production networks within the UK?

Method: Global Production Network (GPN) analysis

Procedure: The research analyzed the global networks of lithium mining, refining, battery chemical production, technology development, and finance, examining how the UK state has attempted to integrate these elements into a national battery sector, particularly in the context of Brexit and the 'global battery race'.

Context: Automotive and energy storage industries, national industrial policy, geopolitical strategy.

Design Principle

Design for Supply Chain Resilience and Strategic Alignment.

How to Apply

When designing new battery-dependent products, research the current and projected availability of key materials, considering potential geopolitical disruptions and government incentives for domestic production.

Limitations

The study focuses on the UK's perspective and may not fully capture the complexities of global supply chain dynamics from other nations' viewpoints. The long-term success of onshoring efforts remains subject to evolving market and geopolitical conditions.

Student Guide (IB Design Technology)

Simple Explanation: This study shows how countries like the UK are trying to bring battery making back home by connecting with global suppliers and using government help, especially because of international competition and environmental goals.

Why This Matters: It helps you understand the bigger picture of where materials come from and how manufacturing happens, which is important for making realistic and sustainable design choices.

Critical Thinking: To what extent can a nation truly achieve complete 'onshoring' of complex global supply chains like battery production, or is it more about strategic integration and risk mitigation?

IA-Ready Paragraph: The strategic onshoring of battery production networks, as highlighted by research into the UK's approach, underscores the importance of considering geopolitical factors and national industrial policies when selecting materials and planning manufacturing processes. Understanding these global production networks can inform design decisions towards greater supply chain resilience and alignment with emerging green industrial strategies.

Project Tips

• When researching materials for your design project, consider where they come from and if there are any political or economic reasons why they might be hard to get.
• Think about how government policies might affect the availability or cost of materials and manufacturing processes for your design.

How to Use in IA

• Use this research to justify your choice of materials, explaining how you considered supply chain stability and potential geopolitical influences in your design process.

Examiner Tips

• Demonstrate an awareness of the global context of material sourcing and manufacturing in your design project, rather than just focusing on the technical aspects.

Independent Variable: Geopolitical factors (e.g., Brexit), Government industrial policy, Global battery race competition

Dependent Variable: UK's battery production capacity, Structure of battery production networks, State's role in assembling capacities

Controlled Variables: Demand for electrical energy storage, Technological advancements in batteries

Strengths

• Provides a framework (GPN) for analyzing complex international industrial development.
• Highlights the significant role of the state in shaping industrial strategy.

Critical Questions

• How do the 'discrete capacities' mentioned in the research actually get 'assembled' in practice?
• What are the potential trade-offs or negative consequences of this 'selective nature' of state accumulation projects in battery production?

Extended Essay Application

• Investigate the supply chain for a critical component in a chosen technology, analyzing the geopolitical and economic factors that influence its global production and potential for localized sourcing.

Source

Lithium, Brexit and Global Britain: Onshoring battery production networks in the UK · The Extractive Industries and Society · 2023 · 10.1016/j.exis.2023.101328