Taking the assault
out of the battery 

“All employees that are involved in the process of preparing, sending and handling lithium batteries are trained and certified to ship lithium-ion technology,” says Cummins. “To ensure compliance with sourcing requirements and adequate capacity to meet our demand, we have visibility into the sourcing of raw materials components beyond our direct supplier.”

Lehmacher believes traceability of the cobalt from the moment of extraction along the different stages in the supply chain is crucial, but says most schemes are failing to do this today. The exception, he says, is probably when using Certified Trading Chains (CTC), which require detailed proof of origin, as well as third party mining site audits and certifications. The CTC was developed by the German Federal Institute for Geosciences and Natural Resource (BGR).

Supply and demand

Lehmacher points out that lithium is not currently traded on any exchange, with prices being determined by long-term contracts or spot market prices in China.

“Securing the supply of raw materials for EV batteries is a key business requirement and ensuring long-term supply will strengthen companies’ ability to meet demand from EV manufacturers,” he says.

Carmaker Tesla is the number one battery manufacturer in North America. Its gigafactory in Nevada, a joint venture with Panasonic, is the world's largest lithium-ion manufacturing factory and it is now working with potential future producers in Canada and the US to create its own cobalt supply chains.

“Companies that buy batteries or battery components are several steps away from the source of the battery raw materials,” says Lehmacher. “Procuring directly from the mines increases visibility and ensures that they know their cobalt isn’t sourced from illegal mining operations and those using child labour.”

Human cost

Amnesty International says human rights abuse, including the use of child labour in the extraction of minerals used to make EV batteries, is undermining ethical claims regarding energy consumption and emissions.

Kumi Naidoo, Amnesty’s secretary general, told the Nordic EV Summit in Oslo in March this year that climate change should not be dealt with at the expense of human rights. “Without radical changes, the batteries which power green vehicles will continue to be tainted by human rights abuses,” he said. “We need to change course now, or those least responsible for climate change – indigenous communities and children – will pay the price for the shift away from fossil fuels.”

Moving batteries to the assembly lines, including their storage requires special handling because of their hazardous nature.

According to Lehmacher, considerations upstream and downstream the supply chain are reflected in frameworks from the CTC and the Organisation for Economic Co-operation and Development (OECD), whose due diligence guide provides recommendations to help companies respect human rights and avoid contributing to conflict through their mineral purchasing decisions and practices.

Lehmacher also points out that there is the need to look at the entire use cycle of batteries. “Battery waste was expected to reach as much as 170,000 tonnes in 2018,” he says. “Lots of energy is needed to extract the minerals from the ground. In the interest of the planet we should re-use and recycle.”

Recycling of batteries is expected to become big business, much as metal recycling is a huge industry today.

“I am convinced that EV batteries can come close to achieving a circular production cycle that requires a minimum of new material to be injected to make new batteries,” says Lehmacher.

Cummins has announced an extended partnership with the University of California San Diego to analyse the most effective ways of reusing and repurposing EV batteries. In certain countries, including the UK, the company is obliged to take back, free of charge, waste industrial batteries supplied to an end user for treatment and recycling.

Current investment
Despite the charge against EV batteries, Naga Karthik Voruganti, mobility analyst at Frost and Sullivan is optimistic raw materials can meet the demand of the 2040 emissions target: “We expect EVs to account for most of the demand for raw materials among all the other industries. Lithium, cobalt and nickel companies are increasing their mining activity, and have extreme production targets to meet the demand from battery manufacturers globally,” he says.

Voruganti went on to say that those battery manufacturers had, in turn, to keep the supply going to the automakers, who have announced huge EV sales targets to comply with the emission regulations and other related standards across the world.

“With billions of dollars, maybe trillions by the middle of next decade, pouring into this industry, we can definitely expect raw materials to meet the demand of EV production to 2040, he says.”