Social risk and performance assessment of battery raw materials: implications for sustainable sourcing and social LCA
Davis Jose, Rose Nangah Mankaa, Marzia Traverso
Abstract
Abstract Purpose The increase in demand for raw materials of an electric vehicle (EV) which is mainly composed of NMC (nickel, manganese, and cobalt) lithium-ion battery (Li-NMC) brings significant social impacts to the various stakeholders involved in the mining and processing of these minerals, including workers, local communities, society, and actors in the value chain. The EV battery supply chain also faces many challenges, including limited impact on the human rights and environmental practices of suppliers, as well as difficulty in ensuring that batteries are responsibly sourced. Indeed, all those elements have been listed as critical raw materials by the European Commission since 2017. To address this issue, it is necessary to understand the scale of the social burden associated with the production of these minerals and explore alternative supply chains or minerals with less impact. Methods Therefore, a social life cycle assessment (S-LCA) was conducted in this study, following the Guidelines of Social Life Cycle Assessment of Products and Organizations (UNEP, 2020). The results of the S-LCA revealed social impacts at two levels: social risk (SR) at the country level and social performance (SP) at the company level. Results and discussion These impacts were found to be significantly negative, particularly in relation to child labor, health and safety, and forced labor in the mining and refining stages. The results also showed differences in the SP of each raw material, with manganese mining showing better SP, while cobalt, lithium, and nickel mining were found to have less SR. Conclusions The transition to EV involves many environmental, social, and governance challenges, and requires a comprehensive approach to identify companies that operate both profitably and responsibly in each stage of the EV supply chain. Understanding the risks and societal impacts associated with battery materials can help guide decision-making and promote the adoption of more sustainable and responsible practices in the EV industry.