APEC Drives Toward A Sustainable Electric Vehicle Supply And Value Chain

APEC is off to the races with its effort to develop a more sustainable electric vehicle supply and value chain, tackling issues such as the future of mobility and ensuring the inclusion of micro, small and medium enterprises both regionally and in transportation networks.

Peru’s Minister of Production, Sergio Guerrero, in his remarks at the Automotive Dialogue in Arequipa, reaffirmed his commitment to generating policies that contribute to the development of the industry and an innovative productive sector with greater technological and sustainable content, thus generating greater and better opportunities for small and medium-sized companies.

“With this objective in mind, we are promoting innovation and technology transfer so that companies incorporate quality standards in their production processes and thus be able to participate under better conditions in global trade,” Minister Guerrero said.

“In this sense, we believe that this space for public-private exchange will be of great value for the design and implementation of better policies that have an impact on the automotive sector,” Minister Guerrero added.

The Automotive Dialogue is a unique forum bringing together senior industry representatives and government officials to exchange perspectives on developments in the automotive industry in the region. Its goal is to foster integration and the full development of the competitive advantages of the regional industry.

The shift to electrification and energy transition has triggered an increase in the demand for copper, a critical component for lithium-ion batteries. Peru is the world’s second biggest producer of copper, with production expected to reach 3 million metric tons this year.

“The previous session of the Automotive Dialogue focused on addressing climate change objectives. We now aim to emphasize and identify the next steps to foster competitiveness and capacity building among micro, small and medium enterprises for their integration into APEC’s productive chain,” said Luis Garcia, the government co-chair for the Automotive Dialogue.

"Promoting inclusion in the automotive supply and value chain contributes to broader economic growth and helps mitigate risks associated with over-reliance on a limited number of suppliers or regions, ensuring a more resilient and flexible supply chain that can adapt to changing market conditions,” Garcia added.

“The automotive sector is a fundamental part within the structure of Peru’s economy as it creates job, provides the transfer of technology and attracts investment,” said Karsten Kunckel, the industry co-chair of the Automotive Dialogue.

“However, the unregulated growth of vehicles fleet has caused several problems such as higher levels of environment pollution, vehicle accidents and traffic congestion,” Kunckel added, explaining that public policy that supports modernization will support the reduction of environmental impacts of these vehicles.

The dialogue heard updates from the APEC Business Advisory Council which calls for stronger cooperation among member economies to tackle decarbonization issues in the transportation sector. ABAC particularly highlights the strengthening of electric vehicles supply chain in the APEC region, including critical minerals or transition metals to fulfil the continuously growing demands for electric vehicles.

The next dialogue will be hosted by Peru in Lima on 18-19 August.

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