LONDON, April 5,
2022 /PRNewswire/ -- Fastmarkets, the
industry-leading cross-commodity price reporting agency (PRA),
announced the launch of its battery raw materials (BRM) risk
matrix. The electric vehicle (EV) is critical to automakers'
growth and the global transition to a low-carbon economy. But
varied, dynamic BRM risks may hinder EV market growth. The
Fastmarkets' BRM risk matrix is a graphical representation of
the risks arising from the BRM supply chain. It has been developed
to help planners and decision-makers understand, anticipate and
mitigate business planning risks.
The Fastmarkets' BRM risk matrix assesses ten risks that can
impact the battery and automotive markets in the 2022-2025 and
2025-2030 periods. It assesses the likelihood and possible impact
of risks, and how those risks are expected to change over time. The
ten risks are:
- Price volatility at elevated levels complicates financial
- Supply deficits hold back overall EV growth
- ESG concerns complicate local supply
- Geographic concentrations create supply and logistics risk
- Limited scrap holds back recycling as a supply source
- Insufficient charging infrastructure slows EV adoption
- Aged price mechanisms hinder investment
- Growth in the use of indexing complicates the path to
- Inability to clean up supply chains creates reputational
- Geopolitical tensions disrupt production and logistics
The success of EVs is a key determinant of whether automakers
can thrive, survive, or fall behind in the next 10 years. Battery
raw materials will play a central part in that dynamic.
Fastmarkets' BRM risk matrix is a working, living framework to
help battery makers and automakers proactively and systematically
understand, anticipate, and mitigate risks.
"Business leaders need to be extremely attentive to the risks in
the BRM market in making decisions on battery composition, how to
hedge against price volatility, and how to gain leverage on the
supply chain," said Fastmarkets CEO Raju
Daswani. "Building and winning in the EV market will
increasingly be determined by the ability to actively manage the
risks that will undoubtedly shape this market."
To dig deeper into these risks and engage with our experts,
please participate in our BRM risk matrix discussion on
May 4, 2022.
Fastmarkets is the industry-leading
Price Reporting Agency (PRA) for global commodities, providing
price data, news, analytics, and events for the metals and mining,
forest products, and agriculture markets. Fastmarkets' data is
critical for customers seeking to understand and predict dynamic,
sometimes opaque markets, enabling trading and risk management.
Fastmarkets is a global business with a 130-year history built on
trust and deep market knowledge. Its team of more than 450 people
are located in global offices including London, Helsinki, Boston, New
Beijing, Singapore, Brussels and São Paulo. Fastmarkets is part of
Euromoney Institutional Investor PLC (LSE:ERM), a listed company on
the London Stock Exchange. Euromoney is a leading international
business-to-business information group focused primarily on the
global commodities, banking and asset management markets.
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