?? Infyos Newsletter: Summer Edition ??
Dive into key updates and news shaping the battery industry, including:?
Keep reading for more information on the battery industry from an ESG and regulation perspective.
But before that, it isn’t just the battery industry that has been dealing with forced labour allegations of late. The UK’s environment secretary, Steve Reed MP, was quizzed about potential supply chain connections to forced labour in a solar farm that was recently approved while The European Bank for Reconstruction and Development also touched on forced labour risks in wind energy in its recent supply chain guidance for the sector.
?? ESG in the Battery Supply Chain?
Batteries l Extraction, Refining | Forced labour?
Members of the U.S. Congress have accused CATL and Gotion High-Tech of being connected to forced labour in Xinjiang through certain entities in the supply chain who have affiliations with the Xinjiang Production and Construction Corps (XPCC), a U.S.-sanctioned entity. The members have called on the U.S. Department of Homeland Security to block shipments of the companies' products. Both companies have strongly denied the claims.
All materials l Extraction, Recycling | Circularity
Is there a scenario where the world reaches net-zero mineral demand in the 2040s? Yes, is what Daan Walter and the team at RMI argue in their new report, The Battery Mineral Loop, which looks at the ways in which we can address the rising demand for battery materials. The answer? The combined forces of efficiency, innovation and circularity.
Batteries l Manufacturing | Employee Health & Safety
A fire at a lithium battery factory in Hwaseong, South Korea killed 23 workers, including 12 women and five men from China. The blaze risks souring sentiment in the country toward the entire industry, which has been plagued by a series of fires over the years.
All materials l All Stages | Climate Change
Carbon credits are in the news once again. A review by the Science Based Targets initiative (SBTi) of third-party studies recently indicated that “various types of carbon credits are ineffective in delivering their intended mitigation outcomes” and could potentially stall decarbonisation efforts and reduce the flow of climate finance.
?? Regulation Watch??
The European Union Commission has proposed a tweak to the Battery Regulation’s carbon footprint methodology, which has raised the ire of the German automotive industry. The proposed changes would use the national electricity mix as the basis of carbon calculations, rather than the emissions from electricity actually used, starting in 2027. Given that Germany’s grid emission intensity is higher than other countries, such as France, many manufacturers had plans to use power purchasing agreements (PPAs) to reduce emissions.??
?? Learn more about how to get ready for the carbon footprint requirements in our report on the EU Battery Regulation! ??
Trade continues to feature in the latest escalation of tensions between China, Europe and the U.S, with Europe imposing provisional countervailing duties on imports of BEVs from China. This comes after the U.S. imposed 100% tariffs on Chinese EVs and increased tariffs for batteries and battery parts from 7.5% to 25% in May.?
Meanwhile, in the U.K., the newly elected The Labour Party is trying to breathe life into the country’s automotive and battery industries. The government’s plan for the automotive industry includes financing of new gigafactories and establishing a Supply Chains Taskforce to strengthen supply chains and secure domestic raw materials, including exploring lithium mining in Cornwall.?