Capturing potential social risks along the global supply chains for NCM batteries manufactured in China

Abstract

The transportation sector is a major contributor to greenhouse gas emissions, making the electrification of road transport through traction batteries crucial for transitioning to clean energy. China, as the leading global producer of traction batteries, faces significant challenges with the social risks associated with battery technologies, particularly Nickel Cobalt Manganese batteries (LiNi_xCo_yMn_zO₂), which require substantial amounts of critical raw materials. Previous studies have investigated social risks using supply chain data with assumptions, neglecting the actual supply chain in China. Additionally, they have overlooked the upstream indirect impacts. To address these gaps, this study employs social life cycle assessment to evaluate the potential social risks along the global raw material supply chain for different NCM batteries in China. It identifies “Governance,” especially corruption, as a significant social impact along the supply chain, with aluminum from Guinea being the major hotspot. Recycling can mitigate nearly 37 % of these risks despite the involvement of chemical reagents. NCM 811 can reduce total social risks by over 40 % compared to NCM 111 and decrease China's social risk impact on other countries and regions by 46 %, primarily due to its higher energy density. Notably, 12 % of the total impacts are upstream indirect impacts, emphasizing the need for a comprehensive supply chain analysis. In addition, potential social risks are allocated to Sustainable Development Goals (SDGs) to explore their impact on sustainability. SDG 16 (Peace, Justice, and Strong Institutions) is significantly affected by NCM battery raw material acquisition, underscoring the influence of raw material acquisition on sustainability.