Why responsible, low-carbon battery supply chains matter

What does it take to support cleaner technology and infrastructure – like electric vehicles, wind turbines and energy storage systems – that shape the path to decarbonisation?

As the global economy strives to secure the energy transition, demand for critical minerals, such as cobalt, nickel, lithium, copper, and rare earth elements, has surged. The rapid expansion in critical mineral extraction, processing and manufacturing has not come without environmental and social trade-offs. And those oversights did not go unnoticed: expectations have been moving upstream, with new due diligence laws making companies legally responsible for human rights and environmental impacts across their value chains.

From legal non-compliance and supply disruption to reputational damage and loss of market access, the risks are diverse, but the message is consistent: inaction erodes resilience.

In this article, we look into carbon-intensive supply chains that produce batteries: how manufacturers and OEMs can lead the charge in reducing emissions, and what can be improved to turn opaque supply chains into traceable networks.

Defining the product carbon footprint of a battery

Batteries have become a critical part of the global energy transition. They play a central role in electrifying mobility and enabling a higher share of renewables within the power mix. The demand for batteries will significantly increase during the coming years. For instance, the battery production supporting electric vehicle manufacturing is expected to triple from 1 TWh in 2024 to 3TWh in 2030 [1].

Within the automotive sector alone, the embedded greenhouse-gas emissions of batteries in electric vehicle production can account for ~20-40% of total emissions [2], underpinned by a sharp increase in the regulatory, investor and OEM pressure, as proves the latest EU Battery Regulation [3] and third-party scrutiny from the Corporate Climate Responsibility Monitor 2025 [4].

Our research has shown that 55 to 85% of a battery’s cradle to gate emissions originate from upstream in material extraction, refinement and processing. The values can vary substantially between different battery producers based on their suppliers’ practices, energy mix, processing technology and regional context.

Our client, CATL, the world’s leading Chinese battery manufacturer, highlights in its 2023 Carbon Accounting Report [5] that 86% of its total emissions (Scope 1 + 2 + 3) relates to Category 1 “Purchased Goods and Services”.

Analysing the material emissions for Lithium Iron Phosphate (LFP), Nickel Cobalt Aluminium (NCA) and Nickel Manganese Cobalt (NMC) battery chemistries, we concluded that graphite, aluminium, copper and nickel combined cover more than 80% of embodied emissions in each battery chemistry [6]. Going further, figure 1 below shows that emissions arise during energy intensive final processing stages, driven by electricity and heat use. In fact, electricity consumption accounts for roughly 60% of material-related emissions, making renewable energy adoption the single most impactful lever.

Knowing that competitive differentiation of battery manufacturers will emerge through low carbon materials (topped with greater supply chain transparency, which we’ll broach on later in this article), which decarbonisation levers will most effectively reduce emissions?

Our team has benchmarked the available solutions against their costs and ease of implementation, and has highlighted that the most immediate step is the decarbonisation of electricity used throughout the battery supply chain.

Transitioning minerals processes to renewable power through corporate power purchase agreements (PPAs), energy attribute certificates (EACs), and on-site generation offers a cost-competitive, proven and rapidly deployable pathway. A detailed analysis and dedicated next steps can be found in our guidebook, Battery emissions report available on slrconsulting.com [6]. And if you’d like to explore what this means for your specific operations or investment strategy, reach out to us, and we will walk you through it.

How companies can operationalise decarbonisation

1. Build a granular emissions map

• Move beyond generic emission factors, disaggregate emissions by material, supplier, and production stage.
• Identify hotspots where interventions deliver highest abatement.

2. Engage suppliers to understand barriers and risks

• Evaluate technological maturity, readiness, and economics of solutions.
• Assess risks, including areas where you have limited control or influence, supplier’s willingness/capability to decarbonise and potential lack of alternative supply options

3. Collaborate to unlock action

• Renewable electricity programmes tailored to supplier needs.
• Joint R&D initiatives for hard to abate materials.
• Insetting programmes that scale impact across deeper value chain nodes.

Transitioning to responsible, low carbon battery materials is both urgent and achievable. Decarbonising battery supply chains is no longer a technical option, it is a strategic imperative for the future of mobility and clean energy.

To summarise, companies who act early will:

• Reduce Scope 3 exposure
• Secure access to low carbon materials
• Enhance supply chain resilience
• Meet or exceed regulatory requirements
• Strengthen their market leadership

Beyond emissions reductions, companies must also consider the political and financial conditions shaping mineral availability. From car manufacturers and governments to individual consumers asking where their minerals come from, sustainable & responsible sourcing is not just compliance, it’s about creating value for citizens, mining professionals, communities, and future generations.

Early movers will set benchmarks for supply chain transparency and resilience

The policies we mentioned earlier, topped by others such as US Dodd Frank Act Section 1502, OECD Due Diligence Guidance for Responsible Mineral Supply Chains, EU Conflict Minerals Regulation [7] also demand transparency and accountability across entire supply chains, particularly those linked to conflict-affected and high-risk areas where much of our critical minerals are found.

Africa, which holds around 40% of the world’s critical mineral reserves sits at the heart of this transformation. Yet, investment and sourcing are often accompanied by environmental damage, community exclusion, and poor working conditions. In 2024, the SLR Better Mining group, whose goal is to transform mining operations of artisanal and small-scale mining (ASM) into safer, more transparent, and economically empowering ventures, launched TRACE 2.0, a 12-month, externally funded project to strengthen the minerals traceability platform. The goal was simple: make the platform more reliable, more scalable, and easier to use for both field teams and clients [8].

The project delivered upgrades to the core architecture, tighter access controls, and new features that improve data quality, transparency, and usability. These shortened issue resolution cycles and improved shipment-level assurance, with fewer data entry errors and faster ticket closure. In the past year, experts and miners showed what steady, practical action can deliver on the ground.

In the DRC and Rwanda’s 3T (tin, tungsten, tantalum) sector, corrective action implementation rose significantly, proving that when mines identify risks and follow through, site conditions improve.

And in Madagascar, the team began building a responsible mica supply chain – supporting exporters, embedding due diligence, and showing that artisanal miners can participate in global markets when conditions are safe and fair.

If you are part of these supply chains – as a buyer, financier, policymaker, or partner – engage directly with ASM rather than step away from it. Support monitoring, training, and traceability. Help build finance that rewards safe and responsible practices. And focus on the basics: fewer incidents, safer pits, and more stable livelihoods. At SLR Better Mining, we will keep bringing evidence and solutions from the ground – but we can’t do it alone. You are invited to stand with us, share your ideas, and help make change last.