The automotive industry is experiencing significant changes due to the shift to electrification, necessitating companies to consider various M&A strategies, including acquisitions, divestitures, restructuring, joint ventures, and partnerships. As regulations like the EU's ban on fossil fuel vehicles by 2035 and the US Inflation Reduction Act drive this transition, companies are seeking ways to secure their place and profits. To achieve this, companies are investing in companies that can strengthen upstream integration in the battery value chain, making supply chains more regional, reducing risks of sourcing and producing in China, and obtaining materials like lithium locally. OEMs are also partnering with tech companies to create integrated customer ecosystems and increase their share of direct sales models. The shift towards electrification is also driving targeted supplier acquisitions and divestitures, reducing dependence on internal combustion engine vehicle components and development costs. This is a trend that is affecting the auto industry's future.