EY Study Identified EV Supply Chain Vulnerabilities
A July 2026 report highlighted critical dependencies and risks in electric vehicle production components.
Updated on Oct. 6, 2026 in Auto Parts
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An EY study prepared in July 2026 examined vulnerabilities within global electric vehicle supply chains. The research found that concentrated production and competition from other high-demand sectors pose significant risks to the automotive industry.
Why it matters
The dependency on specific suppliers and processing centers creates structural risks that could lead to unpredictable vehicle allocations and potential delivery delays. Manufacturers must navigate increasing competition for essential materials from industries like AI and defense.
The study assessed 10 specific automotive materials and components, identifying semiconductors, silicon, and copper as critical vulnerabilities. Supply chains for various brands frequently rely on the same limited processing centers.
The players
EY
EY is a global professional services firm that provides consulting, assurance, tax, and strategy services to organizations.
ACEA
ACEA represents the major automobile manufacturers active in the European Union.
The details
Production remains vulnerable due to lengthy qualification periods and difficulty in extending capacity to meet sudden supply shifts. Competition for raw materials from AI infrastructure, data centers, and renewable energy sectors further constrains the automotive industry.
Timeline
The EY research was prepared in July 2026.
Roadmap
The findings underscore a shift where automotive production is increasingly tethered to the resource demands of the broader technology sector. This ongoing convergence marks a departure from historical manufacturing autonomy, forcing automakers to compete with AI and defense firms for critical materials.
Vehicle buyers may face less predictable delivery windows as manufacturers struggle to secure necessary components. These supply chain pressures could also lead to upward pressure on vehicle pricing if production costs remain volatile.
The takeaway
The concentration of supply chains remains a critical weakness for the automotive sector as it competes for essential components. Buyers should anticipate potential volatility in vehicle availability while the industry works to diversify its material sourcing.
Further reading
Learn more about the latest developments in the sector on our Auto Parts page.
Source note: This article includes information reported by AutomotiveManagement.
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Is now a good time to purchase an electric vehicle given potential future supply chain disruptions?
