?? Battery in ESG Newsletter: November Edition??

This month, we’re focusing on the US elections and the possible implications of the new government on the clean tech industry in general. Read through if you’re wondering how the U.S. elections might impact the clean tech industry.?

The battery news we're covering include:?

• ??Volkswagen exits Xinjiang: After years of scrutiny over human rights concerns, Volkswagen has sold its plant in China’s Xinjiang region while doubling down on its broader Chinese market strategy.
• ???? EU passes Forced Labour Ban: A major step forward—Europe has adopted a regulation banning products made with forced labor, targeting exploitation in global supply chains.

????????? Trump’s Return: What It Means for Clean Energy, Trade, and Global Climate Leadership

?Donald Trump's victory earlier this month is poised to challenge the U.S. electrification process, according to analysis from our partners at Fastmarkets. His administration is expected to revise emissions rules, slow EV adoption, and reevaluate policies like the IRA, which have been pivotal in supporting clean energy initiatives. Industry insiders anticipate delays in battery and clean tech projects, heightened tariffs on imports, and mounting uncertainty for global supply chains.

?Yet, it might not be as firm of a break as some imagine, with experts suggesting that market forces and political pressures, including the large amount of IRA financing flowing towards republican states, means Trump’s return will only slow, rather than stop, the clean-energy boom in the United States.?

?Nevertheless, one thing is for certain: trade tensions are likely to escalate further. A Reuters poll suggests that the U.S. could impose nearly 40% tariffs on Chinese imports early next year, reflecting Trump’s aggressive stance on trade. While economists predict he may not start with blanket 60% tariffs, his policies are expected to ripple across industries reliant on international supply chains.

?Meanwhile, at COP 29 in Baku, China positioned itself as a global leader in the fight against climate change, emphasizing its promotion and investments in renewable energy, notably reinforced by its newly adopted Energy Law of the People’s Republic of China. This move underscores Beijing’s ambition to fill the vacuum left by the U.S., as concerns mount over Trump’s climate-skeptic policies and their potential global impact.

?

From shifting trade policies to competing climate agendas, the next chapter in clean tech and global climate leadership is shaping up to be a dynamic one. Stay tuned as we continue to explore these developments.

?? ESG in the Battery Supply Chain & beyond?

?

Volkswagen announced its exit from China’s Xinjiang region, selling its plant to Shanghai Motor Vehicle Inspection Certification (SMVIC), following years of pressure over human rights concerns linked to Uyghur abuses. Simultaneously, VW extended its partnership with Chinese carmaker SAIC until 2040, signaling its commitment to China as its largest market.

Modern slavery remains a significant issue in UK supply chains, with a recent benchmark by CCLA revealing that 30 out of the 100 companies assessed have reported at least one case. While industry has, overall, improved its performance in managing modern slavery risks, the energy sector, on average, performed worse.

?? Governmental Watch

?The European Union officially adopted the Forced Labour Regulation, which bans products made with forced labour from entering the EU market, aiming to address the exploitation of an estimated 27.6 million people globally. The regulation will require companies to conduct supply chain due diligence in line with international standards, such as the OECD principles and report on their practices.?

Have you ever wondered why Europe isn’t diversifying from China? Over the past several years, the EU has deepened its trade and investment ties with China, particularly in clean tech and chemicals. While the US and Japan have actively diversified away from China through policy measures such as tariffs and subsidies, the EU has hesitated to do so. The EU’s slower diversification is attributed to weaker regulatory frameworks, reliance on Chinese inputs for its green transition, and the economic impact of high energy costs partly caused by the Russian invasion of Ukraine.?

The UK government will not weaken the electric vehicle (EV) sales mandate despite industry pressure, according to Transport Secretary Louise Haigh, who emphasized the commitment to ambitious climate targets ahead of a full petrol and diesel car ban in 2035. While carmakers like Nissan and Stellantis support the transition to EVs, they have raised concerns about meeting the mandate—requiring 22% EV sales this year—amid declining demand and are calling for concessions, including reduced penalties and greater government support.

That’s all for this month’s newsletter! If you have any topics you’d like us to cover, shoot us a message on Linkedin.