EV Battery Supply Chain Sustainability

Rapidly rising demand for electric vehicles (EVs) and, more recently, for battery storage, has made batteries one of the fastest-growing clean energy technologies. Battery demand is expected to continue ramping up, raising concerns about sustainability and demand for critical minerals as production increases. This report analyses the emissions related to batteries throughout the supply chain and over the full battery lifetime and highlights priorities for reducing emissions. Life cycle analysis of electric cars shows that they already offer emissions reductions benefits at the global level when compared to internal combustion engine cars. Further increasing the sustainability of battery supply chains, such as through recycling, can further enhance these benefits and reduce the need for primary critical minerals supply. Governments and industry are already taking steps towards improving battery sustainability and circularity, but further and more widespread efforts will be needed as the market scales up. We explore the different life cycle emissions associated with different battery chemistries, and consequently, the varying strategies that should be pursued to reduce those emissions. This includes a focus on the role of recycling in reducing the need for primary critical minerals supply, as well as how international trade of second-hand EVs can have implications for recycling strategies. The report concludes with recommendations for policy makers.