Strategic priorities for manufacturing
Accelerating the transition to EVs requires policies that align industrial growth with long-term environmental and social value.
“There are no straightforward responses for incumbent manufacturers to the challenges posed by the major shifts in global car markets,” states the report.
“Many are currently working to balance their portfolios in a way that leverages their strengths in producing ICE and hybrid cars, while also improving competitiveness in EVs.”
Creating depfinishable, mass-market demand through measures such as EV sales tarobtains can support countries with large internal combustion engine manufacturing bases achieve economies of scale, encourage learning-by-doing and unlock investment as production shifts.
Scaling domestic battery manufacturing is equally critical, with partnerships to share early-stage risk, tarobtained skills development and the creation of local ecosystems to support equipment supply and maintenance strengthening resilience through the start-up phase.
Sustainability outcomes can be further improved by prioritising the most cost-competitive battery chemistries near vehicle assembly centres, while sustaining research and development to remain at the technological frontier.
Securing diversified and responsible supply chains for critical minerals is deemed essential to avoid near-term shortages and reduce long-term risk, supported by international co-operation, increased recycling and regulatory frameworks that encourage local supply.
Finally, minimising energy costs where they matter most, particularly in energy-intensive stages such as materials processing and battery component manufacturing, can be achieved through effective electricity market design and power purchase agreements that lower emissions while improving cost stability.
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