Dissecting the brutality in energy production: Reducing the violence in batteries
In the rapidly evolving world of electric vehicle (EV) production, the focus on sustainability and ethical sourcing of raw materials has never been more crucial. Here's a roundup of the latest developments in this area.
The car carrier service provider, whose history dates back to its founding year, boasts a substantial fleet size and a diverse customer base. It has moved countless vehicles and operates across multiple business units.
As the demand for EVs accelerates, with the International Energy Agency predicting 125 million electric vehicles in use worldwide by 2030, the need for raw materials such as lithium, cobalt, and nickel is on the rise. These minerals are essential for EV batteries, and their extraction has raised concerns about human rights abuses, including the use of child labor. Amnesty International has highlighted this issue, particularly in the Democratic Republic of Congo, where approximately two-thirds of the world's cobalt is mined.
To address these concerns, companies are turning to technology. Volvo Cars, for instance, has agreed with its battery suppliers to implement blockchain technology for traceability of cobalt, starting this year. Similarly, several companies have launched blockchain initiatives to improve traceability of raw materials used in lithium-ion battery production. Notable among these are automakers and battery producers who have formed coalitions such as the Responsible Minerals Initiative (RMI) expanding blockchain tools. Companies like BMW, Ford, and Volkswagen participate in similar industry efforts for transparent supply chains.
However, the challenge doesn't end with extraction. Moving batteries to assembly lines and their storage requires special handling due to their hazardous nature. This has led to the exploration of alternative methods, with technologies such as blockchain expected to replace traditional paper-based labelling methods to demonstrate the origin of battery materials.
Moreover, as global battery demand is estimated to increase significantly over the next decade, according to analyst firm Wood Mackenzie, the issue of battery waste becomes increasingly pressing. In 2018, battery waste was expected to reach as much as 170,000 tonnes. Recycling of batteries is expected to become a significant industry, similar to metal recycling today.
Cummins has partnered with the University of California San Diego to analyze effective ways of reusing and repurposing electric vehicle batteries. Meanwhile, some EV and battery manufacturers have managed to secure long-term supply contracts for lithium and cobalt, such as Volkswagen Group and Ganfeng Lithium.
Wolfgang Lehmacher, a supply chain and technology strategist, suggests that traceability of raw materials such as cobalt from the moment of extraction along the different stages in the supply chain is crucial. He believes electric vehicle batteries can come close to achieving a circular production cycle that requires minimal new material. Naga Karthik Voruganti, mobility analyst at Frost Mackenzie, shares this optimism, expecting EVs to account for most of the demand for raw materials among all industries.
The Organisation for Economic Co-operation and Development (OECD) has a due diligence guide that provides recommendations to help companies respect human rights and avoid contributing to conflict through their mineral purchasing decisions and practices. In certain countries, companies are obliged to take back and recycle waste industrial batteries free of charge.
In conclusion, the EV industry is making strides towards a more sustainable and ethical supply chain. While challenges remain, the adoption of technologies like blockchain and the commitment of major players in the industry bode well for a future where EV batteries can be produced and disposed of in a manner that respects both the environment and human rights.
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