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Research from Infyos has identified that companies accounting for 75 per cent of the global battery market have connections to one or more companies in the supply chain facing allegations of severe human rights abuses.
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Most of the allegations of severe human rights abuses involve companies mining and refining raw materials in China that end up in batteries globally, particularly in Xinjiang Uyghur Autonomous Region (XUAR) in northwest China.
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“The relative opaqueness of battery supply chains and the complexity of supply chain legal requirements means current approaches like ESG audits are out of date and don’t comply with new regulations. Most battery manufacturers and their customers, including automotive companies and grid-scale battery energy storage developers, still don’t have complete supply chain oversight," says Sarah Montgomery, CEO & co-founder, Infyos.
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Supply chain changes are needed to eliminate widespread forced labour and child labour abuses occurring in the lithium-ion battery market, Infyos added.