Introduction

A leading electric vehicle manufacturer needed to evaluate inbound logistics options for raw materials, particularly minerals and reagents, for their new battery production facility. With multiple potential production locations and complex transportation requirements, they required expert analysis to determine the most cost-effective and efficient supply chain solution. Our team conducted a comprehensive study examining various transportation modes, routes, and facilities to optimize the client’s logistics network and minimize freight spend while ensuring reliable material flow for their battery manufacturing operations. 

At A Glance

PraxiChain delivered an extensive logistics analysis and optimization project for a major EV manufacturer, evaluating multiple facility locations and transportation options for critical battery materials. Our deep supply chain expertise enabled us to:

  • Model and analyze over 20 different transportation scenarios across rail, vessel, and truck modes
  • Evaluate four potential production locations with detailed cost and operational assessments
  • Develop comprehensive recommendations saving over $5M annually in freight costs

The Challenge

The client planned to begin battery production operations requiring the movement of substantial volumes of mineral concentrates and various reagents annually. They needed to determine the optimal location for chemical processing between four options: their main manufacturing facility or three alternative sites. Each location presented unique logistics challenges, including rail access limitations, vessel routing complexities, and transloading requirements. The project required detailed analysis of multiple transportation modes, carriers, and routes while considering factors such as rail fuel surcharges, vessel charter rates, port terminal operations, and material handling requirements. The client needed both strategic guidance on facility location and tactical recommendations for transportation execution.

PraxiChain Solution

  • Conducted comprehensive analysis of transportation options including rail, vessel, and truck modes across all potential origins and destinations
  • Developed detailed cost models incorporating rail rates, fuel surcharges, vessel charter rates, port charges, and transloading fees
  • Evaluated multiple port terminals and transload facilities with detailed operational assessments
  • Created strategic recommendations optimizing the entire supply chain network
  • Provided specific tactical guidance on transportation execution and carrier selection

Results

PraxiChain’s analysis identified the optimal production location that would minimize total freight spend while maintaining operational reliability. The recommended solution provided annual savings of over $5M compared to the next best alternative. The analysis demonstrated that a coastal location offered significant advantages through multi-modal access, competitive rail service, and deep-water port capabilities. Our recommendations included specific facility requirements, carrier selection guidance, and tactical operational procedures. The comprehensive analysis enabled the client to make an informed strategic decision on facility location while having detailed plans for transportation execution. The solution also provided long-term benefits through built-in competition between transportation modes and carriers, helping control future cost increases while maintaining service reliability.