Supply chain strategies in an era of natural resource scarcity

Purpose: The purpose of this paper is to explore the implications of natural resource scarcity (NRS) for companies’ supply chain strategies. Design/methodology/approach: Drawing on the resource dependence theory (RDT), a conceptual model is developed and validated through the means of exploratory research. The empirical work includes the assessment of qualitative data collected via 22 interviews representing six large multinational companies from the manufacturing sector. Findings: When the resources are scarce and vitally important, companies use buffering strategies. Buffering and bridging strategies are preferred when there are a few alternative suppliers for the specific resource and when there is limited access to scarce natural resources. Research limitations/implications: The research focuses on large multinational manufacturing companies so results may not be generalised to other sectors and to small- and medium-sized firms. Future research needs to examine the implications of NRS for organisational performance. Practical implications: This research provides direction to manufacturing companies for adopting the best supply chain strategy to cope with NRS. Originality/value: This paper adds to the body of knowledge by providing new data and empirical insights into the issue of NRS in supply chains. The RDT has not been previously employed in this context. Past studies are mainly conceptual and, thus, the value of this paper comes from using a qualitative approach on gaining in-depth insights into supply chain-related NRS strategies and its antecedents

Creating a circular EV battery value chain: End-of-life strategies and future perspective

The rapid uptake of electric vehicles (EVs) will be vital to decarbonise the transport sector and achieve climate change targets. However, this transition is leading to an increased demand for key battery materials and associated resource challenges and supply-chain risks. On the other hand, discarded EV batteries create business opportunities for second life and recycling. This study presents scenario-driven material flow analysis (MFA) to estimate the future volume of EV battery wastes to be potentially generated in Sweden and future demand for key battery materials, considering potential EV fleet, battery chemistry developments, and end-of-life strategies of EV batteries. Further, we combine MFA with a socio-technical approach to explore how different socio-technical developments will affect both EV battery flows and the underlying systems in the future. Recycling has the potential to reduce primary demand by 25–64% during 2040–2050 based on projected demand, meaning that waste streams could cover a considerable part of the future raw material demands. Second-use of EV batteries can promote circularity yet postpones recycling potentials. From a transition perspective, promoting recycling, second-life use of EV batteries and advanced battery technologies entail system disruption and transformational changes in technology, markets, business models, policy, and infrastructure and user practices. Demand for high-capacity batteries for grid decarbonisation and aviation applications may contribute to the emergence of niche battery technologies. Each scenario highlights the need for effective policy frameworks to foster a circular EV battery value chain