The Green Transition in Context—Cobalt Responsible Sourcing for Battery Manufacturing

Abstract

Responsible cobalt in the context of the green transition is a major issue on the global sustainability agenda. Spurred by concerns around child labor in artisanal mine sites in the Democratic Republic of the Congo (DRC), corporate actors adopted a myriad of strategies to tackle reputational risks and establish responsible sourcing programs. Now encompassing forced labor, corruption, and environmental degradation mining-specific, as well as community development projects constitute the core of Corporate Social Responsibility (CSR) practices in the DRC. Informed by a review of academic and industry studies, this article raises concerns regarding the limitations of responsible cobalt sourcing. We present the initiatives developed to date, based on voluntary strategies, and then introduce new technology tools developed to trace mineral in supply chains, ensuring transparency of the information on the conditions of extraction and trade. Finally, we identify five limitations to responsible cobalt sourcing strategies constituting avenues for future research.

Keywords:

• cobalt
• green transition
• batteries
• supply chains
• responsible sourcing

Notes

1 The DRC holds 48% of world’s reserves of cobalt and produces an estimated 71% of global supply (Darton Commodities Limited 2021; Vetter 2018), with 15–30% of its production coming from artisanal and small-scale mining areas (World Economic Forum 2020).

2 Section 1502 of the Dodd-Frank Act was enacted in 2010 and entered into force in 2013. The law covers “conflict minerals,” also known as tin, tungsten, tantalum and gold (3TG). Hence, cobalt is not included in this legal text.

3 Here, the terms framework and standard refer to the same categories of instruments and processes allowing for suppliers identification through auditing, yet more information is provided below on the differences between these terms. These standards include, inter alia, the Responsible Minerals Assurance Process (RMAP), the Responsible Jewellery Council (RJC)’s Code of Practices, or the London Bullion Market Association (LBMA)’s Good Delivery List.

4 Traceability refers here to processes enabling companies to identify their suppliers all the way back to extractive sites.

5 These compounds include LCO (Lithium Cobalt Oxide), NCM (Lithium Nickel Cobalt Manganese Oxide), NCA (Nickel Cobalt Aluminium Oxide), NiMH (Nickel Metal Hydroxide), LFP (Lithium Iron Phosphate) or LMO (Lithium Manganese Oxide).

6 DRC’s Mining Code was revised in 2018 from a previous version dating from 2002. For more information see Loi n°18/001 modifiant et complétant la Loi n° 007/2002 du 11 juillet 2002 portant Code minier, col. 1.

7 For more information, see Deberdt (2021b).

8 Fine refiners are overwhelmingly located in Asia, including China, South Korea and Japan while crude refiners are plants located in the DRC.

9 The concept of justice applied to the extraction of cobalt in the DRC is best exemplified by a lawsuit filled in, 2020 in the United States District Court for the District of Columbia on behalf of 14 Congolese individuals and against Apple, Alphabet (Google’s parent company), Microsoft, Dell, and Tesla.

10 For a global perspective see Crawford et al. (2020). For an African-focused study, see Muthuri et al. (2021).