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The reality of green energy: “green metal” supply chains won’t be able to keep up

NC State SCRC

But nobody is talking about the supply chain for these vehicles, and the capacity required to build them. And is there enough capacity to produce the new types of vehicles? You guessed it – China – which has nabbed the biggest commercial deposits of cobalt in the Congo. They go out of business?

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Transport Expert Nicolas Meilhan’s Perspective on the EcoVadis 2019 Index Results

EcoVadis

Source: ICCT (2018), effects of battery manufacturing on greenhouse gas emissions over the life cycle of electric vehicles. Consequently, the blend of energy sources that the manufacturing country uses will have a significant impact on the total environmental gain, especially when considering the car’s full life cycle.

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Ethical sourcing risks pose challenge to electric vehicle market

Resilinc

The Democratic Republic of Congo (DRC), which supplies most of China’s and the world’s cobalt raw materials, is also the focus of intense scrutiny over child labor in cobalt mining, according to the Wilson Center. And Tesla, Toyota, and Ford have invested in capacity to build their own batteries in-house.

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An update on copper

Resilinc

Growing scrutiny of ESG impacts of mining is strengthening demand for sustainably sourced metals —but IEA worries that “higher-performing supply chains may not be sufficient to meet demand.” The analysts observe that a key variable will be the level of investment by miners and other value chain players in new copper capacity.

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How to Manage Risk and Boost Transparency in the Raw Material Supply Chain

EcoVadis

With around 50 percent of the world’s reserves held by the Democratic Republic of the Congo, cobalt, commonly used in automotive and electronic products, requires particular attention. The London Metal Exchange just released a positon paper on responsible sourcing with special transitional provision for cobalt.

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Addressing UN Sustainable Development Goal 8: Helping Automotive Businesses Tackle Modern Slavery

EcoVadis

The aberration of modern slavery seeped into public discourse in mid-2016 when reports surfaced that leading automobile manufacturers had sourced paint from suppliers with links to mines using child labor in India 10. Those new standards effectively aim to eradicate modern slavery from the sourcing of 3TGs.

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How the Inflation Reduction Act’s EV Tax Credit Will Reshape Supply Chains

QAD

Those sourcing requirements are scheduled to increase by 10% every year beginning in 2023. The Inflation Reduction Act aims to ensure critical minerals are sourced ethically and sustainably, as well as in a manner that helps stimulate US manufacturing growth.