With global mandates, regulations and ambitions being set to decarbonise industries, focus and investment is moving towards advancing manufacturing and processing capabilities in the renewable energy and battery technology space.
While R&D in the EV space increases and organisations determine the type of alternative fuel cells or battery chemistries that can optimise their vehicle performances, whether in the consumer or commercial markets, there is also an acceleration in progress as they seek to secure further investment to plan manufacturing or gigafactory facilities and optimise supply chains.
As the EV market continues to grow, manufacturers are looking for ways to provide a cost effective and sustainable solution from cradle to grave that will secure and retain their footing in this new market.
At Vendigital we combine our consulting expertise and digital platform to support organisations from concept development through to manufacturing-readiness, helping our clients scale up with clear USPs, profitable portfolios, reduced costs, and with sustainability in mind.
We’ve developed the battery manufacturing assessment to help clients fully understand the capital and operational cost breakdown, and carbon intensity, of battery manufacturing across different cell types, chemistries and scale.
Our battery manufacturing assessment also helps our clients make informed strategic decisions about how to optimise their investments and make business-critical make vs buy decisions.
Developing the baseline
Having a clear view from the client on their ambitions for the battery cell type, chemistries and specifications they want to manufacture as well as operational data is key to build a solid foundation of cost base at a BoM level. This sets the baseline across all known and certain costs.
Understanding the manufacturing processes
Using our manufacturing expertise we build in manufacturing process and equipment costs with an added carbon intensity lens that starts giving shape to the capital investment required to set up manufacturing cells. Our application of macroeconomic data allows us to look at both manufacturing locations of raw materials or semi-finished goods that will make part of the full BoM.
Testing the assumptions and bespoke components
We understand that battery technology is still new in the market, and there are some costs that will be unpredictable or even volatile, using our commercial cost modelling expertise and live data feeds, we are able to provide a degree of accuracy in our model at a granular level that can be used and tested in the market as part of the client’s make vs buy decision making process. Based on the client and macro data available, our model will be bespoke and our assumptions will be tested in collaboration with our client.
Launching the model
Once the model has undergone ergonomics and functionality testing using a set of example cases, the model is ready to be launched for use by the client’s functions, such as Procurement and Cost Engineering, to test the marketplace.
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The benefits of best practice
Our battery manufacturing assessment supports manufacturers across OEMs and EV start-ups as they embark on and accelerate their electrification journey though data led-decision making.
Provides commercial manufacturing transparency
By having a breakdown across operational and capital costs, organisations are able to determine the total impact of battery manufacturing on their business. This can shape discussions at board level on the potential level of investment and capability required to establish operations across new and emerging technologies in a more tangible way.
Informed decision-making for make vs buy
The outputs of the tool can be leveraged to test the market at varying stages of the BoM, enabling clients to make better make vs buy decisions that will give them access to the right capabilities and manufacturing technology, and ultimately secure speed to market in a commercially optimal manner.
Offers a vision for scalability
A drive for sustainability globally creates complex challenges for the supply chain, from raw material access to competition for capital equipment and labour. Our battery manufacturing assessment helps clients scale up cell manufacturing in a sustainable and maintainable way to meet production demand and grow the bottom line across a new and developing portfolio of technologies.
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While calculating carbon emissions can be fairly simple at a site level it can be difficult to get a full breakdown of the carbon content of products.