The electric vehicle (EV) revolution has transformed supply chains in ways that challenge even seasoned industry analysts. Behind the headlines—surging EV sales, gigafactories rising from the ground, government incentives—lies a complex web of industrial activity, spanning continents and industries. For economists and policymakers, making sense of this landscape requires more than narrative. It demands structure. Here, the International Standard Industrial Classification (ISIC) codes offer a surprisingly effective scaffolding for disentangling the threads of the global EV supply chain.
At first glance, the sector appears deceptively straightforward. One might imagine a neat line from battery factories to final vehicle assembly. The reality is far more layered. Each component, from the raw ore to the finished car, involves multiple industrial activities, each with its own code and, often, its own geographic center of gravity. This granularity is essential for anyone trying to track value creation, assess supply risks, or craft targeted policy.
Start with the basics: battery manufacturing, which is typically captured under ISIC 2720 (“Manufacture of batteries and accumulators”). The explosion of demand for lithium-ion batteries has driven both established electronics manufacturers and new entrants into this code, and the geographic spread has shifted as countries compete to host so-called gigafactories. Yet batteries are only one piece. The manufacture of electric motors, categorized under ISIC 2910 (“Manufacture of motor vehicles, engines and turbines, except aircraft, vehicle and cycle engines”), brings a different set of firms and technical challenges into the frame.
To build a comprehensive supply chain map, it’s necessary to move upstream. Raw material extraction—especially of lithium, cobalt, and nickel—is foundational. Here, ISIC 0710 (“Mining of iron ores”) is relevant for certain metals, while other materials are captured under adjacent codes (e.g., ISIC 0729 for “Mining of other non-ferrous metal ores”). These extractive activities may take place continents away from where batteries are assembled. For instance, lithium might be mined in South America, refined in East Asia, and then shipped to battery plants in Europe or North America. The ISIC framework, applied rigorously, allows analysts to follow these flows across borders and time zones.
Once raw materials are secured, they typically pass through a sequence of processing and manufacturing steps, each with its own code. Chemical processing to produce battery-grade lithium compounds sits under ISIC 2013 (“Manufacture of other inorganic basic chemicals”). Component manufacturing—such as battery cells, packs, and management systems—stays within ISIC 2720, but each stage has its own operational and geographic peculiarities. The manufacturing of electric motors and associated electronics may overlap with ISIC 2711 (“Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus”). This overlap can lead to ambiguity, but it also reflects the interdisciplinary nature of EV technology.
The final assembly of vehicles falls under ISIC 2910 (“Manufacture of motor vehicles”), a code shared by both internal combustion and electric vehicle producers. Here, disaggregation is key. Only by combining ISIC-based data with product-level information—such as customs codes or firm-level disclosures—can analysts distinguish between EVs and traditional vehicles. This added layer of detail may require harmonization with other classification systems, but ISIC remains the backbone for most economic reporting.
Connecting these codes into a coherent supply chain map requires a methodical approach. First, collect data at each node: volumes of ore extracted (ISIC 0710, 0729), quantities of processed materials (ISIC 2013), units of batteries and motors manufactured (ISIC 2720, 2711), and vehicles assembled (ISIC 2910). Then, link these activities using trade data, firm-level reporting, or, when available, industry registries that track the flow of components. The challenge is often not one of data scarcity, but of reconciliation—ensuring that figures reported in one part of the world (or by one agency) match those further downstream.
Such mapping enables a range of analyses. Policymakers can identify points of concentration or vulnerability—perhaps a single country dominates cobalt extraction, or battery manufacturing is clustered in a handful of regions. Economists can trace value added along the chain, informing debates about local content rules or the efficacy of subsidies. For those interested in resilience, the same structure can highlight bottlenecks or dependencies, such as reliance on a small number of refineries for battery-grade chemicals.
No system is perfect. ISIC codes were not designed with the EV revolution in mind. Overlaps, ambiguities, and edge cases persist—especially as new technologies blur traditional boundaries. Nonetheless, the discipline of mapping activities to codes, and then connecting those codes in a supply-chain framework, brings a rigor that anecdote cannot match. The process requires patience and a willingness to interrogate data sources, but the payoff is a clearer, more actionable view of a sector that is already shaping the future of industrial policy and international trade.
As the electric vehicle landscape continues to evolve, so too will the need for even finer-grained analysis. For now, ISIC codes provide a practical toolkit—one that, with care and creativity, allows us to chart the intricate paths by which raw materials become the vehicles that are redefining mobility worldwide.