In today’s global market, reliable access to high-quality battery technology is crucial for a wide range of industries, from consumer electronics to electric vehicles. Supply chain professionals, particularly in the United States, are facing increasing challenges in managing the risks associated with their traditional battery supply chains which involve China. With tariffs on the rise and geopolitical instability creating uncertainty, it would be prudent for US companies to review their sourcing solutions and explore regions with stable trade relations with the US. Partnering with a UK battery pack manufacturer can help American businesses to mitigate risks, safeguard their supply chain and secure  cost-competitive, stable, and sustainable battery supply solutions.

Rising Import Tariffs: Risks and Challenges for the Battery Supply Chain

The recent imposition of a 25% tariff on Chinese battery imports by the US government has significantly increased costs for businesses reliant on these products. According to an article on Energy Storage News, this tariff hike is part of a broader trade war strategy aimed at protecting domestic industries, but it has left many companies grappling with higher expenses. Furthermore, with the upcoming presidential election, there is a potential for even higher tariffs. Donald Trump, one of the leading candidates, has suggested that rates could soar to 60% or more if he is re-elected, as reported by The Washington Post.

These uncertainties make the cost and availability of batteries increasingly unpredictable. Additionally, geopolitical tensions, such as the possibility of China challenging Taiwan’s sovereignty, further threaten the stability of supply chains. The centralised decision-making approach in China has also led to significant disruptions during crises, as seen during the COVID-19 pandemic when supply chains were put on hold indefinitely. This behavior has led to speculation that relying solely on China for supply chain needs is no longer a viable strategy for US companies. These factors highlight the need for US companies to explore alternative sourcing strategies.

Diversifying Battery Sourcing Strategies: Why Choose UK Battery Manufacturers?

Many US companies are exploring strategies to diversify their battery supply chains and build resilience. This may involve partnering with suppliers in regions with stable trade relations with the US. Once such region that procurement professional are turning to is the United Kingdom.

With UK and US manufacturers often sharing common ground on topics such as innovation, quality, sustainability and safety, the synergies are obvious. A move towards UK-based manufacturing partners can help US OEMs to strengthen their supply chains and provide long-term price stability and supply security.

Building Long-Term Partnerships with Established Battery Pack Manufacturing Suppliers:

Beyond geographic diversification, partnering with a reliable and experienced supplier is crucial for a secure battery supply chain. Established players with a global presence, like UK battery pack manufacturer, Alexander Battery Technologies (ABT), bring several other advantages to the table:

1. Proven Track Record: With 40 years of expertise, and a strong history of supporting US companies across various technically-demanding sectors such as medical, health and safety, electrification, and communication. The company is well-versed in the latest technologies, ensuring that battery products meet the highest standards of quality and performance. Their low return rate under warranty (0.07%) demonstrates a commitment to quality and reliability.

2. Skilled Workforce and Cutting-Edge Technology: Alexander Battery Technologies leverages the UK’s strong engineering talent pool, ensuring access to a skilled workforce and advanced battery technology. Their recent investments in new R&D labs and state-of-the-art production facilities including a world-first laser welder further solidify their commitment to innovation.

3. Commitment to Sustainability: Alexander Technologies shares the commitment of its US customers to sustainable manufacturing practices. The UK has stringent environmental regulations and resources supporting environmentally-responsible manufacturing, aligning with the sustainability goals of many US companies.

4. Strategic Location: The UK’s central location within Europe provides efficient access to European markets. For US companies with global operations, this proximity ensures timely delivery and logistical efficiency.

5. Commitment to Quality Standards: ABT are on track to achieve several new IATF16949 (Automotive), ISO14001 (Environment), and ISO27001 (Cyber Security) certifications by the end of 2024. This pursuit underscores  the battery manufacturer’s  dedication to meeting the highest quality, environmental, and cybersecurity standards.

By prioritizing diversification, partnering with established suppliers like Alexander Battery Technologies, and carefully evaluating needs, US companies can navigate the evolving battery supply chain landscape and ensure a secure, cost-effective, and future-proof source of battery technology.

Practical Tips and Next Steps for US Companies

To transition to a more stable and cost-effective supply chain, US companies should undertake the following steps:

1. Evaluate Current Supply Chain Vulnerabilities: Conduct a thorough assessment of your current supply chain to identify vulnerabilities and potential risks. This will help you understand the areas where you are most exposed to tariff increases and geopolitical instability.

2. Explore Alternative Suppliers: Look into alternative suppliers that offer strategic advantages. ABT’s UK-based production is one such option that can provide cost savings and supply chain stability.

3. Engage with your chosen trusted supplier: Reach out to the supplier you have identified. A reputable battery pack manufacturer will be open to to discussing your specific needs including how they can support your transition to a more secure supply chain. Alexander Battery Technologies  has supported business through this process before and can provide detailed information on the benefits of switching to a UK battery pack manufacturer to help you assess the feasibility of making the switch.

Conclusion

The evolving battery supply chain landscape presents both challenges and opportunities for US companies. By proactively addressing risks associated with tariffs and geopolitical instability, companies can build resilience and secure their access to critical battery technology. Diversifying sourcing strategies and partnering with established suppliers in regions with stable trade relations are key considerations. Additionally, aligning with partners that prioritize sustainability, R&D, and quality assurance further strengthens a company’s competitive edge. US companies could avoid potential pitfalls of switching lithium-ion battery suppliers by selecting a battery manufacturer with experience of supporting customers through the same process.

For a comprehensive understanding of these challenges and solutions, contact our battery experts to discuss your specific needs and explore how our UK-based production facilities and global expertise can help you navigate the evolving battery landscape and achieve a secure, cost-effective, and future-proof supply chain.