Vertical Integration Strategies in EV Supply Chains: Lessons from Tesla, BYD, and the Race for Battery Dominance

The electric vehicle industry has witnessed unprecedented vertical integration as manufacturers seek control over critical battery supply chains. This study compares the strategic approaches of Tesla and BYD, analysing how backward integration into raw material processing and cell manufacturing creates sustainable competitive advantages. We develop a framework for evaluating integration decisions under conditions of supply uncertainty and geopolitical risk.