Fastmarkets Launches Battery Commodity Risk Matrix to Help Market Players Mitigate Business Risks

LONDON, April 5, 2022 /PRNewswire/ — Fastmarkets, the industry’s leading inter-commodity pricing agency (PRA), has announced the launch of its Battery Raw Materials (BRM) Risk Matrix. The electric vehicle (EV) is essential to the growth of automakers and the global transition to a low-carbon economy. But varied and dynamic BRM risks can hinder the growth of the electric vehicle market. the Fastmarkets BRM Risk Matrix is a graphical representation of the risks arising from the BRM supply chain. It was developed to help planners and decision makers understand, anticipate and mitigate business planning risks.

Fastmarkets’ BRM Risk Matrix assesses ten risks that may impact the battery and automotive markets over the periods 2022-2025 and 2025-2030. It assesses the likelihood and possible impact of risks, and how those risks are expected to evolve over time. The ten risks are:

  1. Price volatility at high levels complicates financial performance
  2. Supply shortfalls are holding back overall EV growth
  3. ESG concerns complicate local sourcing
  4. Geographic concentrations create supply and logistics risk
  5. Limited scrap hinders recycling as a source of supply
  6. Insufficient charging infrastructure is slowing the adoption of electric vehicles
  7. Aging price mechanisms are holding back investment
  8. The growth in the use of indexing complicates the path to $100/kWh
  9. Failure to Clean Up Supply Chains Creates Reputational Risk
  10. Geopolitical tensions disrupt production and logistics

The success of electric vehicles is a determining factor in whether automakers can thrive, survive, or fall behind in the next 10 years. Battery raw materials will play a central role in this dynamic. Fastmarkets BRM Risk Matrix is a functional and living framework to help battery manufacturers and automakers proactively and systematically understand, anticipate and mitigate risks.

“Business leaders need to be extremely mindful of the risks in the BRM market when making decisions about battery composition, how to hedge against price volatility, and how to gain supply chain leverage. “said the CEO of Fastmarkets. Raju Daswani. “Building and winning in the electric vehicle 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.

ABOUT QUICK MARKETS
Fastmarkets is the industry’s leading pricing information agency (PRA) for global commodities, providing price data, news, analysis and events for the metals and mining, forest products markets and agriculture. Fastmarkets data is essential for clients seeking to understand and forecast dynamic, sometimes opaque markets, enabling trading and risk management. Fastmarkets is a global company with a 130-year history built on trust and deep market knowledge. Its team of more than 450 people is spread across offices worldwide, including London, helsinki, Boston, new York, Shanghai, beijing, Singapore, Brussels and Sao Paulo. Fastmarkets is part of Euromoney Institutional Investor PLC (LSE:ERM), a company listed on the London Stock Exchange. Euromoney is a leading international business-to-business information group focused primarily on global commodity markets, banking and asset management.

SOURCE Quick Markets

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