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With the growing demand for electric vehicles (EVs), automakers are racing to secure the critical components required for EV batteries, including cobalt and lithium. However, many of these materials are sourced from countries with poor labor conditions and environmental regulations, raising concerns about human rights violations and environmental degradation.

Mining Risks to overcome

The Democratic Republic of Congo and Bolivia are two of the countries where cobalt and lithium are primarily sourced. However, both countries are acting to change their history of exploitation and human rights abuses in their mining industries. Moreover, mining in Bolivia has led to significant deforestation, water pollution, and soil erosion.

Sustainable Alternatives

To address these concerns, some automakers have started exploring sustainable alternatives to traditional mining. BMW has partnered with a company that uses recycled EV batteries to extract critical materials. Other companies, such as Tesla and Volkswagen, have committed to using only sustainably sourced materials for their EV batteries.

Consumer Pressure

Consumer pressure has also played a crucial role in pushing automakers to prioritize sustainability in their supply chains. Many consumers are willing to pay a premium for sustainably sourced materials, and companies that fail to address environmental and labor concerns may face reputational damage.

Sustainable Mining Practices in Australia and Canada

Australia and Canada are two countries that have taken steps to promote sustainable mining practices. In Australia, for example, miners have developed a process to extract lithium from mica, a mineral commonly found in the country’s mines. The process is not only environmentally friendly but also eliminates the need for child labor. Similarly, Canada has established a certification process for responsible mining practices, known as the “Canadian Mining Certification Program.”

Collaboration Needed

While individual companies can take steps to promote sustainable sourcing, a collective effort is needed to address the systemic issues in the mining industry. Collaboration between automakers, governments, and civil society groups can help ensure that mining practices are sustainable and respect human rights.

The rush for materials needed for EV batteries has highlighted the risks associated with traditional mining practices. Automakers must prioritize sustainable sourcing and work with other stakeholders to promote ethical mining practices. With consumer pressure and a commitment to collaboration, the industry can move towards a more sustainable and ethical future. Countries such as Australia and Canada serve as examples of sustainable mining practices, and other countries can follow suit to ensure that mining practices are sustainable and environmentally friendly.

This communication is for informative purpose only. Damalion experts support companies in search of mining investment opportunities to satisfy their resources needs. Please contact your Damalion experts now.