1+1 = They will be coming for our nickel The moves point to an industry that is again embracing elements of vertical integration, a strategy that traces its roots to the early days of the auto industry when some manufacturers owned or acquired much of the supply chain necessary for production. Ford Motor Co. at one point owned mines and a steel mill.
The sharp shift to electrics has spurred concerns about whether companies will be able to secure enough high-quality materials for making the batteries and other components that are core to meeting future sales targets.
Executives say controlling more supply-chain production can help insulate companies from future price increases and shortages. The disruptions related to the Covid-19 pandemic and the recent semiconductor shortage are further pushing the car industry in this direction, prompting manufacturers to lessen their reliance on global outsourcing.
“Everybody wants to secure the supply chain and not repeat the very painful experience of the semiconductor shortage,” said Mathias Miedreich, CEO at Umicore.