You are the global supply chain manager for the Golden Eagle Automotive Battery Corporation. The US-Mexico-Canada Agreement (USMCA) regarding the North American auto industry has a 2030 requirement of 75% locally produced electric vehicle batteries. To meet this requirement, your company will build an automotive battery manufacturing and recycling plant in Rochester, New York on the site of the former Eastman Kodak complex.
For your company to have a shot at competing in the electric vehicle battery market, it must accomplish two major tasks to ensure maximum profits. First, it must push innovations to maximize battery cell capacity and production output. The second major task and realistically the most difficult obstacle looming is the supply chain of raw materials to produce the batteries. North America has relied on imports to supply the components of technologies such as batteries. This includes elements like nickel, lithium, graphite, and cobalt.
In addition to manufacturing most of the world’s batteries, China is also an abundant source for many of the minerals and other materials required for the battery manufacturing process. Australia and South America can refine these rare earth mineral components but, they remain logistically distant from North America.
Exploration in Uzbekistan has recently identified large deposits of nickel, lithium, graphite, and cobalt. The government of Uzbekistan has indicated that it is willing to work with foreign companies that are interested in mining and exporting these mineral deposits.
As the global supply chain manager for your company, what would you recommend to your Chief Operating Officer (CEO) regarding the Uzbekistan opportunities? Do you recommend that your company pursue these opportunities with Uzbekistan? Or do you recommend that your company forgo these opportunities with Uzbekistan and seek other opportunities? Which of the following five global supply chain concepts would you use to support your recommendation?
Globalization and International Trade
Supply Chain Relationships
Supply Chain Strategies
Transport in Supply Chains
Transport Security
