Jiangmen Hongli Energy Co.ltd

Jiangmen Hongli Energy Co.ltd

Risk Mitigation Strategy for Battery Manufacturers in 2024

2025 03/25

Against the backdrop of global challenges and frequent geopolitical risks, supply chain resilience has become a core capability for companies to ensure order delivery and mitigate risks for buyers. Lithium manganese dioxide battery manufacturers need to provide global customers with stable, efficient and low-cost battery supply solutions through multi-source procurement, global logistics layout and dynamic risk plans.
 
Multi-source procurement strategy: diversify risks and stabilize supply chain
1. Global supply network for positive electrode materials:
One of the core raw materials for lithium manganese dioxide batteries is manganese dioxide, and its supply stability directly affects production capacity and cost. By building a diversified supplier network covering five major regions in the world, companies can effectively avoid supply chain problems caused by geopolitical risks or natural disasters in a single region.
 
Data support: If a supplier in a certain region reduces production by 50% due to an emergency, suppliers in other regions can quickly fill the gap within 3 weeks to ensure that production capacity fluctuations do not exceed 10%.
Procurement advantages: By combining long-term agreements with spot purchases, it is possible to lock in stable prices and flexibly adjust procurement ratios to cope with market fluctuations.
 
2. Double insurance for inventory management:
For key raw materials, a dual-source strategy of "main supplier + backup supplier" is set up, and a safety inventory of at least 3 months is established; at the same time, the Internet of Things technology is used to monitor global inventory dynamics in real time to achieve accurate matching of supply and demand.
 
Innovation in logistics layout: speeding up delivery and localized services
1. Mixed transportation of China-Europe trains and sea transportation:
For European customer orders, a mixed transportation mode of "China-Europe trains + sea transportation" is adopted to balance cost and timeliness:
Timeliness improvement: *Compared with the pure sea transportation solution, the mixed mode can shorten the delivery time of key orders by 30%, such as transporting urgent orders by trains, and covering regular needs by sea transportation.
Cost optimization: The comprehensive logistics cost is reduced by 15%-20%, and container LCL services are supported at the same time, which reduces the logistics threshold for small and medium-sized customers.
 
2. Overseas bonded warehouse stocking strategy:
Bonded warehouses are set up in major markets such as Europe and North America to reserve standardized battery products in advance. After the customer places an order, it can be shipped directly from the local warehouse within 24 hours, greatly reducing the terminal waiting time.
 
Risk plan: lock variables in advance to protect customer interests
1. Raw material price lock mechanism:
Taking the global manganese price fluctuations in 2021 as an example, companies can stabilize costs in two ways:
Long-term agreement pricing: *Sign a 3-5 year quantity and price binding agreement with core suppliers, agree on the price fluctuation range, and ensure that the increase in key raw materials does not exceed 30% of the market average.
Futures hedging: Futures hedging of manganese on platforms such as LME to offset spot market price risks.
Data results: During the surge in manganese prices in 2021, the above strategy was used to control the increase in battery manufacturing costs within 15%, far lower than the industry average of 40%, winning long-term customer trust.
 
2. Supply chain stress testing:
Simulate emergency scenarios every quarter, evaluate indicators such as inventory turnover and order delivery capabilities, and dynamically adjust emergency plans-for example, enable air transport alternatives or temporarily add secondary supplier orders.
 
With a diverse range of products and technologies, Jiangmen Hongli Energy Co., Ltd possesses important assets and competitive strength that helps the company profit from the new business opportunities emerging from the growth of the disposable lithium ion battery industry, which has limitless potential. As the market continues expanding, yielding new prospects and transformations in consumer habits, Jiangmen Hongli Energy Co., Ltd continues to lead the market while delivering high quality, dependable batteries and unparalleled services to clients globally.