The cobalt challenge - The dark side of the energy transition | DW Documentary

DW Documentary2 minutes read

The Democratic Republic of the Congo plays a vital role in supplying cobalt for electric vehicle batteries, with major car manufacturers like VW and Renault shifting towards electric vehicles to meet environmental regulations. However, challenges like exploitation in artisanal mining, corruption, and environmental impacts raise concerns about the sustainability and ethical sourcing of cobalt for the growing electric vehicle market.

Insights

  • The Democratic Republic of the Congo is a critical supplier of cobalt for electric vehicle batteries, with cobalt mainly sourced from the DRC due to its unique mineral deposits, despite facing environmental and social issues in the mining sector, including exploitation, poor working conditions, and health risks.
  • European countries are heavily investing in electric car batteries and aim to ban internal combustion engine cars by 2035, leading to initiatives like battery development projects and the establishment of the European Battery Alliance to compete with China in sustainable battery production, emphasizing traceability, standards adherence, and low carbon footprint to address reputational risks and ensure responsible mining practices for the future.

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Recent questions

  • What are the environmental impacts of cobalt mining?

    Cobalt mining, particularly in the Democratic Republic of the Congo, has significant environmental consequences. The mining process can lead to deforestation, soil erosion, and water pollution, affecting local ecosystems and biodiversity. Additionally, the use of chemicals and heavy machinery in mining operations can further degrade the environment, leading to long-term damage. Contaminated water sources and toxic waste disposal pose risks to both wildlife and nearby communities, highlighting the need for sustainable mining practices to mitigate these environmental impacts.

  • How does the EU plan to increase battery production?

    The European Union aims to boost battery production to meet the growing demand for electric vehicles and reduce reliance on Asian-manufactured batteries. By establishing the European Battery Alliance and investing in battery development projects, the EU plans to build 30 gigafactories by 2035 to increase its share of global battery production. These efforts focus on sustainable practices, job creation, and investments in local economies. By expanding battery manufacturing within Europe, the EU aims to enhance its competitiveness in the global market while promoting environmentally friendly production processes.

  • What are the social issues associated with cobalt mining?

    Cobalt mining in the Democratic Republic of the Congo is linked to various social issues, including poor working conditions, exploitation of workers, and health risks. Artisanal miners, who contribute significantly to global cobalt supply, often face unsafe working environments, low wages, and lack of labor rights protection. Child labor is also prevalent in some mining operations, raising concerns about ethical sourcing and human rights violations. The reliance on cobalt from regions with such social challenges underscores the importance of promoting responsible mining practices and ensuring the well-being of mining communities.

  • How does the EU plan to address battery recycling?

    The European Union has set ambitious targets for battery recycling to promote a circular economy and reduce environmental impact. By 2035, all electric vehicles sold in the EU must contain at least 20% recycled cobalt, encouraging companies to adopt sustainable practices in battery production. Leading companies like Umicore are investing in battery metal recycling technologies to recover cobalt and other valuable materials from used batteries. This focus on recycling not only reduces the demand for new raw materials but also minimizes waste and contributes to resource conservation in the battery industry.

  • What role does due diligence play in cobalt supply chains?

    Due diligence processes are essential in tracing cobalt supply chains to prevent human rights abuses and ensure ethical sourcing practices. Companies like RCS Global monitor both industrial and artisanal mines to verify compliance with labor standards and environmental regulations. However, challenges exist in guaranteeing genuine tracing, especially in complex supply chains like those in China, where transparency may be limited. By conducting thorough due diligence and promoting transparency in the cobalt supply chain, companies can address reputational risks associated with child labor and exploitation, fostering responsible sourcing practices in the battery industry.

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Summary

00:00

"DRC Cobalt: Supply, Risks, and Reputational Impact"

  • The Democratic Republic of the Congo supplies raw materials for global cobalt demand, crucial for making batteries for electric vehicles.
  • Major car manufacturers like VW, Renault, BMW, and Volvo are transitioning to electric vehicles due to environmental concerns.
  • The EU plans to ban new internal combustion engine cars by 2035, impacting the entire production chain.
  • Europe heavily invests in electric car batteries, with most using nickel manganese cobalt (NMC) technology for a range of 400 kilometers per charge.
  • Cobalt, crucial for battery safety, mainly comes from the DRC due to its unique mineral deposits.
  • The DRC faces environmental and social issues due to cobalt mining, with residents living in poor conditions and facing health risks.
  • Artisanal mining in the DRC provides a significant portion of global cobalt supply, with workers facing exploitation and safety hazards.
  • The artisanal mining sector in the DRC is crucial for flexible cobalt supply, unlike industrial mines focused on copper.
  • Amnesty International highlights the exploitation and risks faced by artisanal cobalt miners, including child labor and poor working conditions.
  • Companies using DRC cobalt face reputational risks due to links with child labor, impacting their business and consumer perception.

26:20

EU's Battery Project Aims for Sustainability

  • The EU initiated a battery development project in 2017 due to the reliance on Asian-manufactured batteries, focusing on traceability, standards adherence, and low carbon footprint.
  • The European Battery Alliance was established to compete with China in battery production, aiming for sustainable practices and local benefits like job creation and investments.
  • Europe currently produces only 10% of the world's batteries, with plans to build 30 gigafactories by 2035 to increase its global supply share.
  • Northvolt, a Swedish company founded by Peter Carlson and Paolo, aims to address Europe's need for battery production, with investments from major car manufacturers like BMW and Volkswagen.
  • Europe operates mining projects for cobalt, with reserves in Sweden, Norway, and Finland, including nickel-cobalt mines and plans for more development.
  • Terra farmer, a Finnish company, reactivated a mine in Sotkamu to supply Renault with nickel for EVs, focusing on sustainable practices and battery chemical production.
  • Umicore, a Belgian company, leads in battery metal recycling, aiming to recycle nearly 100% of cobalt from batteries in the future.
  • By 2035, all EVs sold in the EU must contain at least 20% recycled cobalt, with companies like Volkswagen and Northvolt already incorporating recycling in their operations.
  • Due diligence processes are crucial in tracing cobalt supply chains to prevent human rights abuses, with companies like RCS Global monitoring industrial and artisanal mines.
  • Challenges exist in guaranteeing genuine tracing in complex supply chains, especially in China, where transparency is limited, and changes in suppliers impact traceability efforts.

46:13

Corruption in Congo's Mining Sector: Impactful Consequences

  • Downstream companies rely on faith that Chinese refineries will keep streams separate, a challenging task.
  • Companies hire expensive consultants to conduct due diligence and reporting, keeping them at arm's length.
  • Industry schemes are used where companies join to promote standards, often just a paper exercise.
  • Amnesty International and donors play a crucial role in exposing issues like child labor, forced resettlement, and corruption.
  • Belgian colonial rulers and later Congolese leaders exploited the country's resources, leading to corruption and plundering.
  • Israeli businessman Dan Gertler played a key role in obtaining mining licenses in the Congo through corrupt means.
  • Glencore and Eurasian Resources Group benefited from corrupt deals facilitated by Gertler, leading to legal disputes and investigations.
  • Corruption in the mining sector has severe consequences for ordinary citizens, impacting their health and livelihoods.
  • Mining activities in Kolwezi have led to severe ecological and health impacts, with rivers and ecosystems heavily contaminated.
  • The lack of accountability and compensation for affected workers and communities highlights the ongoing challenges in the mining sector.

01:10:18

"Fish sales decline amid environmental mining concerns"

  • Fish sales are in question due to reservations and lack of interest from wholesalers for professionally caught fish for years.
  • Legal proceedings are ongoing, with court hearings scheduled for December involving multiple courts and well-known lawyers representing the defendants.
  • Environmental activist Mika Flirt and biochemist Yari Natunan express concerns about the impact of mining activities on water quality and biodiversity.
  • Terra Farmer, the mining company, faces accusations of environmental negligence and contamination, with issues related to water treatment and toxic waste disposal.
  • The mining activities in Saima Lake have raised concerns about water toxicity, biodiversity loss, and the future of the tourism industry in the region.
  • The demand for raw materials for batteries is expected to increase significantly by 2040, prompting calls for responsible mining practices and sustainable resource management to meet emissions targets.
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