Additionally, countries in the Global South have almost exclusively been part of the raw material extraction segment of the value chain and have not seen the benefits of their endeavours, as the materials are extracted to produce EVs that generate value and benefit primarily other countries. As noted by the United Nations in its guiding principles on critical energy transition minerals, “The dependence of mineral-producing developing countries on exports of mineral commodities has resulted in vulnerability of their economies to mining cycles, and limited their realization of the economic benefits of mining.”44 Lower-income countries often rely on second-hand vehicle imports, and EVs will continue to make up a growing share of vehicles in exporting countries.45 Therefore, many EVBs will reach their eventual EOL in lower-income countries – many of which lack the necessary infrastructure and regulatory frameworks to safely and responsibly manage EOL batteries. Without infrastructure and trained workers to enable reuse, repurposing and recycling, or affordable transport options to move batteries for EOL management, second-hand markets may resort to landfilling, stockpiling or informal recycling that are harmful to the environment and human health and pose safety risks. These practices increase the safety hazards inherent in LIBs, including chemical toxicity and fire risks, which endanger both workers and surrounding communities.47 Furthermore, the risks of informal or improper EOL disposal may be exacerbated by the import of low-quality batteries with limited remaining useful life, made possible by unclear, inadequate or unenforced international regulations governing the import and export of used EVs, used EVBs and EOL battery materials. While a circular battery economy has the potential to reduce the environmental impact of EVBs and bring about significant socio-economic opportunities, this new economy must be designed with equity in mind to ensure all markets benefit, and that none are disproportionately burdened. To help achieve this, more countries must get involved in the value chain and facilitate responsible cross- border movement of batteries and battery materials.FIGURE 7 Imports banned Europe Japan United States Dominant used-car import country Used cars exported per year >270,000 145,000-270,000 20,000-145,000 Used vehicle imports and exports Source: UNEP Powering the Future: Overcoming Battery Supply Chain Challenges with Circularity 16

Powering the Future 2025