SUPPLIER EYE

The bloom is slowly wilting off the rose. The last two years witnessed an unprecedented level of battery electric vehicle (BEV) investment from both the auto industry and federal government. Head-snapping numbers in the billions of dollars have been focused on vehicle development, battery-cell plants, upstream mineral supply capabilities, vehicle-charging infrastructure build-out and outfitting all of the above surrounding this shift. One day we'll look back at these times - and shake our heads.

Telling component suppliers that it is a matter of when, not if, BEVs will achieve dominant volumes, based on S&P Global intelligence and forecasts, typically does not calm their fears of the unknown. Vulnerabilities are emerging as both suppliers and OEMs direct substantive capital, resources and time towards growing their businesses in electrification. It's already clear that the transition will not be smooth and orderly. More accurately, it's going to be bumpy and erratic.