Automotive Industry Hot Topics – Sustainability Special Edition (08/31/2023)

This week we have collaborated with Fresh Coast Climate Solutions for a special edition of Hot Topics focusing on auto supply chain sustainability in the face of climate change. This is in collaboration with the announcement of the release of a research paper titled, “Escalating Need for Auto Supply Chain Action to Align with Paris and Limit Warming to 1.5°C.” This comprehensive study delves into the critical intersection of automotive supply chains, climate change, and sustainability initiatives. As the world grapples with the urgent need to address climate change, this research highlights the imperative for the automotive industry to align with the Paris Agreement and limit global warming to 1.5°C.

View the press release here: Escalating Need for Auto Supply Chain Action to Align with Paris and Limit Warming to 1.5°C Press Release

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Alan’s thoughts:

A key to reducing the industry’s carbon footprint lies within steel production. Green steel, produced using environmentally friendly processes, is necessary if the industry is to meet its CO2 objectives. To encourage funding of new processes, steel providers need long-term commitments from auto OEMs to mitigate investment risk. Collaboration between the supply chain and OEMs is essential. 


Battery Minerals: 


Alan’s thoughts:

It is great to see progress in EV battery development. Lithium-sulfur is under exploration while sodium, a low-cost alternative to lithium, seems to be close to a production start. Toyota is investing in solid-state batteries and lithium iron phosphate batteries are now in production. Investment in battery chemistry is abundant as the industry looks to optimize energy density, safety, and weight.  




Alan’s thoughts:

The auto industry has one of the most complex supply chains of any industry. Over the past 30 years, automotive components and systems have increasingly been outsourced to tier 1, 2, and 3 suppliers. Reducing the industry’s carbon footprint requires a concerted effort by all parties in the supply chain. Navigating multiple tiers in numerous locations within a fiercely competitive industry presents challenges, particularly in terms of achieving cooperation, coordination, and transparency. Clear communication, adequate planning time, and a commitment to transparency are essential if the industry is to achieve its CO2 target.  


Alan Amici

President & CEO

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The post Automotive Industry Hot Topics – Sustainability Special Edition (08/31/2023) appeared first on Center for Automotive Research.

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