Abstract
Battery technology is emerging as a key enabler for the transformation of the automotive industry, with approximately 20% of the EU's automotive value creation shifting to other economic regions – particularly China and Southeast Asia – across global supply chains. Purpose of this research is a comprehensive analysis of the global battery supply chain, with a focus on new dependencies, resilience, systemic risks, as well as the position and potential of Europe within the context of a circular supply chain economy.
Based on a design science approach (1), a generally applicable method on how to map and analyze global supply chain is developed (i.e. the artefact) and prototypically applied to the lithium-ion battery supply chain (i.e. the application). Drawing on global trade data, fine-granular S&P global mobility data, stakeholder workshops, and policy analysis the overall global supply network is mapped consisting of several thousand actors and over 32.000 trade relationships from raw material to battery application in electric vehicles.
The study also identifies alternative supply chain configurations with a higher democratic index or lower CO₂ emissions. It reveals that the battery supply chain is highly concentrated, with over 95% of lithium mining and 93% of battery cell production controlled by a few non-EU players.
This study concludes by highlighting circularity as a key strategic lever for enhancing resilience and competitiveness. Austrian firms are well-positioned to lead in second-life applications for EV batteries, including stationary storage, grid balancing, and portable energy solutions. However, realizing this potential requires coordinated EU-wide policies that ensure access to critical raw materials, support recycling infrastructure, and incentivize reuse and remanufacturing.
Finally, the study recommends a multi-level policy approach: (1) reduce dependency on single countries through diversified sourcing; (2) foster EU-based circular supply chains; (3) streamline regulatory approvals; and (4) promote innovation in battery recycling and second-life applications. The EU Battery Regulation is a critical enabler but must be supported by strong internal demand and local production capabilities to close the loop.
This work directly supports the goals of the Direct Recycling Battery Conference by highlighting the strategic importance of circularity in battery value chains. It offers actionable insights into how policy, industry, and research can collaborate to build sustainable, resilient, and competitive battery ecosystems in Europe. Evidence-based recommendations, data-driven decision-making, and the application of complexity research are key to addressing the challenges and interdependencies within global battery supply networks.
Based on a design science approach (1), a generally applicable method on how to map and analyze global supply chain is developed (i.e. the artefact) and prototypically applied to the lithium-ion battery supply chain (i.e. the application). Drawing on global trade data, fine-granular S&P global mobility data, stakeholder workshops, and policy analysis the overall global supply network is mapped consisting of several thousand actors and over 32.000 trade relationships from raw material to battery application in electric vehicles.
The study also identifies alternative supply chain configurations with a higher democratic index or lower CO₂ emissions. It reveals that the battery supply chain is highly concentrated, with over 95% of lithium mining and 93% of battery cell production controlled by a few non-EU players.
This study concludes by highlighting circularity as a key strategic lever for enhancing resilience and competitiveness. Austrian firms are well-positioned to lead in second-life applications for EV batteries, including stationary storage, grid balancing, and portable energy solutions. However, realizing this potential requires coordinated EU-wide policies that ensure access to critical raw materials, support recycling infrastructure, and incentivize reuse and remanufacturing.
Finally, the study recommends a multi-level policy approach: (1) reduce dependency on single countries through diversified sourcing; (2) foster EU-based circular supply chains; (3) streamline regulatory approvals; and (4) promote innovation in battery recycling and second-life applications. The EU Battery Regulation is a critical enabler but must be supported by strong internal demand and local production capabilities to close the loop.
This work directly supports the goals of the Direct Recycling Battery Conference by highlighting the strategic importance of circularity in battery value chains. It offers actionable insights into how policy, industry, and research can collaborate to build sustainable, resilient, and competitive battery ecosystems in Europe. Evidence-based recommendations, data-driven decision-making, and the application of complexity research are key to addressing the challenges and interdependencies within global battery supply networks.
| Originalsprache | Deutsch (Österreich) |
|---|---|
| Publikationsstatus | Veröffentlicht - 3 Feb. 2026 |
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