However, battery supply chains remain complex, global, and fragile, with many still evolving from scratch. Their resilience is impacted by a growing number of factors, from rising raw material costs to geopolitical disruption. Average battery pack prices have risen in 2022, the first increase since 2013. Environmental, social, and governance (ESG) concerns, greater regulation, and governments’ desire to localize battery production add to pressure on already-stretched global supply chains. All of these factors lead to potential bottlenecks that affect production.

The rise of electric vehicles (EVs) and associated battery gigafactories is pushing forward the creation of a European closed-loop battery recycling value chain. Increased recycling demand, intensified EU regulations, and a strong desire to localize supply chains and safeguard critical raw materials is driving multiple opportunities. In this context, as we explore in this Viewpoint, new ecosystems are emerging, and players interested in scaling need to act quickly to take advantage of the current environment.

Combining technology, scale-up capabilities, and capital to power change Realizing the strategic importance of batteries, Western governments are aiming to build their own ecosystems, competing (and collaborating) with Asian leaders. So, what will the battery ecosystem of tomorrow look like? To discuss current and future trends, Arthur D. Little (ADL) brought together representatives of established and emerging players. This Viewpoint provides a high-level summary of the discussion.

Gambit: “A clever action in a game or other situation that is intended to achieve an advantage and usually involves taking a risk” [Cambridge Dictionary] The pandemic has transformed the environment for green investment, unlocking new opportunities as governments, corporates and investors all take a fresh look at their priorities. As this article explains, now is the time for companies to adopt a new focus on nurturing disruptive innovations, making bold strategic gambits that will drive green transformation.

Key findings from an ADL executive webinar with corporates and investors