CATL to keep close eye on cobalt, lithium, graphite suppliers

Neo Lithium Corp, whose Tres Quebradas lithium brine project in Argentina is pictured here, is one of CATL’s suppliers. (Reference image courtesy of Neo Lithium).

Lithium-ion battery developer and manufacturer Contemporary Amperex Technology (CATL) announced that it has partnered with RCS Global Group, a company that focuses on data-driven responsible sourcing, to keep track of its cobalt, lithium and graphite suppliers.

In a press release, the Chinese company said that, under the scope of the partnership, RCS Global’s ESG audit practice will identify CATL’s suppliers from battery to mine or recycler, and will also assess their conformance with environmental and human rights requirements.

RCS’ ESG audit practice will identify CATL’s suppliers from battery to mine or recycler and work with them to develop a responsible supply chain

Once the evaluation is done, RCS will work with CATL and its suppliers to enhance the development of a responsible supply chain.

“The partnership will enable CATL to become an industry leader in responsible sourcing by ensuring the continuous improvement of its suppliers’ performance in responsible production and sourcing,” the media brief states.

“Suppliers, in turn, are benefitting as the process allows them to demonstrate their performance improvement to the market while being given access to best practice guidance. In doing so, the partnership aligns CATL’s risk management approach with best practice expectations within the fast-growing electric vehicle (EV) market, enabling CATL’s long-term sustainable development.”

CATL has collaborated with RCS Global in the past when conducting due diligence audits on its suppliers for stakeholders including Volvo Cars, Groupe PSA, Renault Nissan Mitsubishi Alliance, Volkswagen Group and others. The goal behind those audits was to increase the transparency of the mineral supply chain and reduce uncertainties by identifying risks and taking timely risk-mitigation measures at an early stage.

“As the world’s largest EV battery supplier, we are excited to be expanding our collaboration with CATL,” RCS CEO, Nicholas Garrett, said in the release. “They have a huge presence in the market and huge leverage further up the supply chain where they can help embed responsible practice across the production and supply of key battery metals.”