Powering the Future 2025

For instance, depending on the source of raw materials, the carbon intensity of the electric grid supply for refining and manufacturing, and the distance travelled by battery minerals from origin to assembly, common lithium-ion battery (LIB) chemistries can have a carbon footprint between 65 and 100 kg of CO2 equivalent per kilowatt- hour (CO2eq/kWh).15 Without disclosure of these factors, it is not possible to determine a battery’s carbon footprint. Similarly, without visibility into the origin of raw materials; the labour and environmental practices used at each stage of the value chain; and how the battery is managed at EOL, it is not possible to understand the social and environmental impacts of a battery. Mining without adhering to due diligence standards can lead to human rights abuses; violations of free, prior and informed consent; and land and water pollution, impacting the health and livelihoods in surrounding communities. Understanding the social impacts of a battery also requires knowing if and how the raw materials benefitted local populations, or if they were extracted and exported solely for the benefit of other markets. Finally, it is essential to ensure batteries are reused, repurposed and eventually recycled at EOL – which requires visibility into EOL management – to reduce reliance on mining and avoid the harms of improper disposal. Without visibility into all these factors, buyers have less ability to differentiate and procure lower-impact batteries, hindering due diligence efforts; producers have less incentive to reduce their impacts; consumers have less information to make purchasing decisions; and regulators and civil society have less ability to hold all parties accountable. Efforts to increase transparency have begun, as seen in the digital product passport requirement of Regulation (EU) 2023/1542 of the European Parliament or the “EU Battery Regulation,” but more work is needed to advance widespread implementation of such approaches and to standardize data tracking and disclosure frameworks. FIGURE 4 Movement of critical minerals around the world Lithium ore Lithium brine United States Australia China China ChinaFrance MexicoGermany Germany GermanyNetherlands Chile Republic of Korea Republic of Korea Republic of Korea Republic of KoreaRepublic of Korea JapanJapan Poland Poland Germany United States United States United States United States Poland Canada Canada HungaryBrazil Argentina China ChileLithium ore and brine Traded value $21billion Unit value $1.65Lithium oxide and hydroxide Traded value $7.5 billion Unit value $6.42Battery materials Traded value $49 billionCell component/ Battery packs Traded value $109 billionElectric vehicles Traded value $129 billionExtraction Processing Manufacturing of parts End users Mexico BelgiumNorway United Arab Emirates AustraliaGermany United States United KindomCanada Source: UNCTAD secretariat calculations based on data from UN Comtrade14 Powering the Future: Overcoming Battery Supply Chain Challenges with Circularity 11