The development of these industries and their reliance on batteries is causing an

unprecedented lithium demand which is causing battery producers and lithium miners
to rapidly increase their operations.

Q4 Throughout this period governments will continue to play a key role in the
LIB and EV industry as they guide demand through policies and subsidies.

Among priorities of china’s 13th Five year plan was growing the auto industry.

A major focus was on the development of EV’s which meant that expanding the
production of LIB’s was a key component of industrial strategy and the scale of
Chinese investment in production capacity ensures that china will be world’s
dominant manufacturing center for LIB in future.

Q5- How do you think the structure of the LIB industry evolve over the next five years?

The most important industrial strategy was the expanding production of LIBs as Cleaner energy is
the future .

The structure and development of the LIB industry is projected to increase in

demand over a five-year period

We can say that the Changing trends in the automobile industry and the
advancement in battery technology, coupled with capital investment has allowed EV
expansion and expanded LIB production

(The industry of China was growing e.g. 13 th five years plan LIB was their strategic priority ). At the
same time Japanese and South Korean industries expanded their production in order to keep their
market position stable. Chinese investment in production ensures that China is the world’s largest
manufacture industry for LIBs at the moment and for the next years.

The companies that produce LIBs include battery manufacturers, users of batteries and suppliers of
materials and components of the industry.

Without the supply chain in place the demand of battery won’t exist in these rates in the future.

Q6- Will the industry generate an attractive rate of profit over this period?

Most companies are still expanding their capacity in anticipation of future growth
and The industry will favour those companies that can control their supply chain.

The continued reduction in the cost of LIB’s, projected to decrease by 18% annually
will increase the demand for LIB’s primarily in EV’s and storage cells over the next
five years due to affordability.

There is a low threat of substitutes for LIBs over the next five years as technological
advances remain slow .
Overall, the LIB industry will be profitable due to sustained demand during this
period, but substantial profits will be controlled by suppliers and producers of
integrated products, such as EVs, and not by LIB manufacturers.

It depends on the balance between production capacity and demand. Also, the costs of raw
materials and components may influence the company’s profitability. Based on forecasts, it is
estimated that LIB’ s sales from 2018 to 2040 will be raised from 12 million to 65 million. The
demand of LIB batteries is going to increase until 2020 for EVS use. The demand of automotive LIB is
going to increase from 2015 to 2040. The cost of batteries is falling.

Q7 -Other automobile manufacturers considering to follow Tesla’s lead and invest in

producing its own battery packs - What advice would you give them?

on this projection, Automobile manufacturers will need immediate access to the

battery production market to secure an uninterrupted supply, further increasing the
demand for battery packs among EV manufacturers

So firstly other automobile manufacturers will need to catch up with production and
the shift towards EV demands by consumers.

Suggestion would be to focus on LIB supply chain and create alliances or

partnership within the extractive industry to secure sources of raw materials. The
immediate access to raw materials will allow them to market themselves as part of
the EV industry and develop its growth strategy. As the industry continues to shift,
they will need to develop a competitive advantage to gain a strong position within the
EV industry.

The trajectory of the automotive industry is electric sources of energy. The large
investments intends to make towards EV production will require sufficient access to
raw materials and production measures for battery packs. Ultimately, this shift will
provide them with supply chain control and enable the firm to implement strategy to
design, build, and improve LIBs and EVs through production efficiency and
effectiveness, enabling VW to adapt to the continuously changing business
environment .