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Environmental and Human Rights Concerns in the Electric Vehicle Supply Chain

by Daisy Mae D.
07/02/2024
in Ethical Sourcing, Sustainability & Ethics

The electric vehicle (EV) industry is experiencing significant growth, with global sales expected to double between 2023 and 2029. However, the production process of these vehicles involves numerous environmental and social challenges. This article examines various stages of the EV supply chain, highlighting the associated exploitation and industrial practices.

Nickel Mining and Environmental Impact

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A typical lithium-ion battery in an electric vehicle, such as those made by Tesla, contains about 50 kilograms of nickel. The rising demand for this metal has led mining companies to expand operations in regions rich in nickel reserves, including Indonesia, Australia, and Brazil. In the Philippines, the Rio Tuba Nickel Mining Corporation is a significant player, with operations impacting local communities and ecosystems.

Environmental groups have reported health issues and environmental degradation linked to open-pit nickel mining. For example, tests conducted by Friends of the Earth Japan between 2009 and 2019 found elevated levels of hexavalent chromium, a carcinogen, in local water sources. Both Rio Tuba and its partner company, Sumitomo Metal Mining, have stated they maintain adequate environmental safeguards, but concerns persist.

Indigenous Communities and Legal Challenges

Indigenous communities in the Philippines have raised legal challenges against mining companies, alleging violations of land rights and environmental laws. In one case, the Philippines Supreme Court ordered government agencies to address claims of illegal deforestation and mining operations without proper consent from local communities.

Nickel Mining in Indonesia

Indonesia has also ramped up its nickel-mining operations, driven by investments in nickel-processing facilities. Environmental groups have documented significant environmental damage and human rights abuses associated with these operations. For example, the Harita Group’s activities have displaced local residents and caused environmental harm.

Cobalt Mining in the Democratic Republic of Congo (DRC)

Cobalt mining in the DRC is another area of concern. Research by Rights and Accountability in Development (RAID) and the Centre d’Aide Juridico-Judiciaire (CAJJ) has highlighted exploitative labor conditions and abuse by managers in Chinese-owned mining operations. Workers report physical abuse and chronic health issues, including respiratory problems. The impact on local communities includes reduced agricultural yields due to water contamination and displacement of residents.

Labor Conditions in China

China’s role in the global EV supply chain is significant, with reports of forced labor in the production process. The Swedish research organization GlobalWorks has documented state-imposed labor transfers in regions like Xinjiang, affecting the Uyghur Muslim minority. Companies such as Samsung and Panasonic have been linked to these practices through their suppliers.

US Manufacturing and Labor Issues

In the United States, efforts to increase domestic EV production are ongoing. However, workers in these facilities face industrial hazards and low wages. The United Auto Workers (UAW) has been advocating for better pay and safety conditions, resulting in recent improvements at plants like the GM-owned Ultium Cells in Ohio.

Conclusion

While the EV industry plays a crucial role in reducing carbon emissions, it faces significant challenges related to environmental and human rights. Efforts to ensure ethical sourcing and improved labor conditions are essential as the industry continues to grow. The global supply chain remains complex, with ongoing concerns about transparency and accountability.

Get the latest supply chain report news at The Supply Chain Report. Learn more about international trade with tools from ADAMftd.com.

#ElectricVehicles #EVSupplyChain #EthicalSourcing #Sustainability #HumanRights #SupplyChainNews

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