The timely supply of raw materials and components is crucial to smooth manufacturing. OEMs and their tier suppliers need to know which of those materials and parts are difficult to source or already in short supply. Many have taken action to secure supply through vertical integration. It means OEMs are aligning the sourcing and supply of critical components and commodities needed to produce their cars.

On May 6 this year Tesla confirmed a long-term supply agreement with Vale, one of the largest nickel producers globally, with mines in Brazil, Canada and Indonesia. Meanwhile, in a bid to not rely on single sourcing, but enhance a multiple sourcing strategy, Tesla has this month sent a delegation to visit the nickel production hubs in Morawali on Sulawesi Island in Indonesia. The electric carmaker is looking to invest in Indonesia, the world’s largest single source of nickel, and sent a proposal to the government February last year.

Volkswagen is also looking at an integration strategy, and in March this year signed two memorandums for cobalt and nickel supplies. The first joint venture will be a three-way partnership between VW, Huayou Cobalt and Tsingshan Group for the extraction of nickel and