Lithium-ion battery developer and manufacturer Contemporary Amperex Technology Co. Limited, or CATL, and RCS Global Group have launched a landmark responsible sourcing partnership.
The partnership currently covers CATL’s cobalt, lithium and graphite suppliers but the partnership will also expand to cover aluminium, copper manganese and nickel suppliers in the future.
Under the scope of the partnership, RCS Global’s industry-leading ESG audit practice will identify CATL’s suppliers from battery to mine or recycler. RCS Global also will assess these suppliers for conformance with environmental and human rights requirements and work with CATL and the suppliers to enhance the development of a responsible supply chain.
The partnership provides a robust, data-driven basis for CATL to engage its suppliers and sub-suppliers to better explain and monitor adherence to responsible production and sourcing requirements in its supply chain. It also allows CATL to more effectively follow up on agreed corrective actions and improvements following the RCS Global audits.
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.
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.
As a global leader in the development and manufacturing of lithium-ion batteries with businesses covering R&D, manufacturing and sales of batteries for new energy vehicles and energy storage systems, CATL is committed to taking environmental and social responsibility seriously by establishing long-term and stable relationships with suppliers as well as improving social and environmental conditions in the supply chain.
In cooperation with RCS Global, CATL has already completed due diligence audits on its suppliers for stakeholders including Volvo Cars, Groupe PSA, Renault Nissan Mitsubishi Alliance, Volkswagen Group and others, 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. Also, 38 of CATL’s core suppliers have undergone training to improve their responsible mineral due diligence management capacity. CATL will continue to work closely with stakeholders and partners in the supply chain to jointly address global issues.
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“This is a milestone moment for RCS Global as we continue to expand our role in driving responsible sourcing across the emerging EV supply chain,” says RCS Global CEO, Dr Nicholas Garrett.
“As the world’s largest EV battery supplier, we are also excited to be expanding our collaboration with CATL. 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,” Garrett concludes.