Critical Factors to Consider in Purchasing for a Sustainable Inbound Supply Chain : A Perspective on Large Scale Lithium-ion Battery Manufacturing

Abstract: Together with electrification of the transportation sector and the introduction of renewable energy in the electricity grid, the demand for lithium-ion batteries is increasing. As a result of this emerging need, large-scale battery manufacturing is a promising and developing industry. Currently, there exist a challenge for lithium-ion battery manufacturers to ensure supply of the desired material and to guarantee operation in a sustainable manner. The material included in a battery cell possess unique characteristics, has high criticality, and experience limited availability, which has resulted in an un- certain business environment with high complexity. Hence, the aim of this thesis is to investigate how unique material characteristics affect the purchasing environment and can be considered to obtain a sustainable inbound supply chain for lithium-ion battery manufacturers. The study is based on the following research question; How can purchasing of critical direct material for lithium-ion battery manufacturers support a sustainable inbound supply chain?