Talking Supply Chain: Can We Divest from China?

The push toward electric vehicles in the U.S. serves as a cautionary tale of how dependent the world is on China for components. A New York Times’ analysis last year found that China refines 95% of manganese, 73% of cobalt, 70% of graphite and 67% of lithium. All of which are important parts of an EV. So, is it possible to transition to an EV future without China?

LevaData CEO Keith Hartley joins Talking Supply Chain host Brian Straight to discuss just how dependent the global supply chain is on China.

While there is renewed emphasis on nearshoring and friendshoring, that alone is not enough to free supply chains of China’s influence.

“We’re incredibly intertwined and completely reliant on China at this point and it’s been that way for a while now,” Hartley said. “About 72% of the world’s products flow … in some way through China now. That is not an easy needle to move. To move it 1 or 2 percentage points is a tremendous amount of volume and a tremendous amount of economic activity.”

So, what can companies do? Hartley said there are some steps to help mitigate the reliance on Chinese suppliers. Also, particular attention needs to be paid of geopolitical tensions, not just in the U.S., but globally.

To hear all of Hartley’s insight, listen to this episode of Talking Supply Chain.