“We are in the fastest transition in our industry ever… We are sending clear signals to the innovators in our supply chain that we will support them,” said Andreas Follér, head of sustainability at truck maker Scania.
“The events of the last three years have taught businesses a lot about the fragility of supply chains. Vertical integration is first and foremost a strategy that minimizes risk of disruptions,” said Rebecca Campbell a partner at White & Case law firm that advises companies on such deals.gallium and germanium, used in the semiconductor and defense industries, are a case in point.
“In times of de-globalization and higher geopolitical risks, the security of supply has become more important,” it said in an email. Scania said that following its 10 million euro seed investment in H2GS in 2021, it has entered a steel supply agreement from 2027. Supply chain investments are inherently risky, partly due to the cyclical nature of commodity markets, and might only work as temporarily to resolve bottlenecks and polish environmental credentials, say auditors and lawyers who assist companies on such transactions.
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