Hybrid cars are twice as vulnerable to supply chain issues as gas-
powered models

Date:
July 28, 2021
Source:
American Chemical Society
Summary:
The global computer chip shortage has hit car manufacturers
especially hard, indicating the importance of supply chain
resilience. Yet, for hybrid electric vehicles, it isn't clear how
their production could be impacted by fluctuating supplies and high
prices. To get a grasp of these vulnerabilities compared to those
for gas-powered models, researchers conducted a thorough analysis,
finding that hybrid models have twice the vulnerability to supply
chain disruptions.



FULL STORY ==========================================================================
The global computer chip shortage has hit car manufacturers especially
hard, indicating the importance of supply chain resilience. Yet, for
hybrid electric vehicles, it isn't clear how their production could be
impacted by fluctuating supplies and high prices. To get a grasp of these vulnerabilities compared to those for gas-powered models, researchers
reporting in ACS' Environmental Science & Technology conducted a thorough analysis, finding that hybrid models have twice the vulnerability to
supply chain disruptions.


========================================================================== Supply chain weaknesses were brought to the forefront during the COVID-19 pandemic, especially for industries relying on electronics, as the flow
of raw materials slowed or sometimes stopped. On top of that, shifting
consumer values and tougher environmental regulations have resulted in
more people buying hybrid vehicles. The batteries in these cars require
rare metals that, depending on their supplies, can have volatile and unpredictable prices. But there are other scarce elements and materials
that may be used in smaller amounts in hybrid models versus conventional
gas vehicles, raising the question of how these vehicles really compare
with regard to supply chain vulnerabilities. Although previous studies
reported lists of the elements used in conventional cars' parts, similar information on the parts used in hybrid vehicles is lacking. So, Randolph Kirchain and colleagues wanted to develop a comprehensive comparison of
the elements and compounds that go into all the parts in gas-powered, self-charging hybrid and plug-in hybrid cars, calculating each of the
three vehicles' materials cost vulnerability.

The researchers collected information on the compounds in the more than
350,000 parts used to build seven vehicles from the same manufacturer
with different levels of electrification, including four sedans and
three sport utility vehicles (SUVs). Then, they calculated the amount
of the 76 chemical elements present, as well as a few other materials,
in each car type. To develop a monetary metric for vulnerability, the
team considered the weight of each component, along with its average
price and price volatility between 1998 and 2015. The results showed
that self-charging hybrid and plug-in hybrid vehicles have twice the raw material cost risks, which equates to an increase of $1 billion for a
fleet of a million sedans and SUVs, compared to conventional models. The largest contributors to the increase in cost risks were battery- related elements, such as cobalt, nickel, graphite and neodymium; however, changes
to the exhaust and transmission systems in hybrid vehicles reduced the
impact of palladium and aluminum, respectively. The researchers suggest
that as manufacturers ramp up electric vehicle production to meet demand,
they can reduce raw material cost risks with long-term supplier contracts, substitute some materials or recycle others.

========================================================================== Story Source: Materials provided by American_Chemical_Society. Note:
Content may be edited for style and length.


========================================================================== Journal Reference:
1. Karan Bhuwalka, Frank R. Field, Robert D. De Kleine, Hyung Chul Kim,
Timothy J. Wallington, Randolph E. Kirchain. Characterizing
the Changes in Material Use due to Vehicle
Electrification. Environmental Science & Technology, 2021; 55
(14): 10097 DOI: 10.1021/acs.est.1c00970 ==========================================================================

Link to news story: https://www.sciencedaily.com/releases/2021/07/210728105731.htm

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