When regulations shape the future of an industry, the case of the high voltage battery

Abstract

In China, Europe and the United States, the transition from thermal to battery electric vehicles is ongoing under the effect of technology forcing regulations. We investigate whether and how those related to high voltage batteries could shape the future of the automotive industry. While China is leading the way, Europe and the United States, with very high levels of funding, are racing against time to catch up and develop a sustainable battery value chain controlled by local champions. As the U.S. resorts to protectionism, we hypothesize that we may see the emergence of three geographic production hubs, ending the globalization of the battery industry.