L 191/14
EN
Official Journal of the European Union
28.7.2023
(77)
The extraction, processing and trading of natural mineral resources is fundamental in providing the necessary raw materials for the production of batteries.
Battery manufacturers, regardless of their position or leverage over suppliers and of their geographical location, could inadvertently contribute to adverse impacts in the mineral supply chain.
For some raw materials, over half of global production is intended for use in battery applications.
For example, over 50 % of the global demand for cobalt and over 60 % of the world’s lithium is used for battery production.
About 8 % of global natural graphite production and 6 % of global nickel production goes into battery manufacturing.
(78)
Only a few countries supply the raw materials used in battery manufacture and, in some cases, low standards of governance in those countries can exacerbate environmental and social problems.
Both cobalt and nickel mining and refining are connected with a large range of social and environmental issues.
While the social and environ­ mental impacts for natural graphite are less severe, the mining of natural graphite can have serious health and environmental impacts since it is mainly carried out by artisanal and small scale operations, mostly in informal settings.
This, together with the absence of regularly updated mine closure plans and rehabilitation, can result in the destruction of ecosystems and soils.
The expected increase in the use of lithium in battery manufacturing is likely to put additional pressure on extraction and refining operations.
It is therefore appropriate that lithium be included in the scope of battery due diligence obligations.
The expected massive increase in demand for batteries in the Union should not contribute to an increase of such environmental and social risks.
(79)
Some of the raw materials used in battery manufacturing, such as cobalt, lithium and natural graphite, are considered to be critical raw materials for the Union, as indicated by the Commission in its communication of 3 September 2020 on ‘Critical Raw Materials Resilience: Charting a Path towards greater Security and Sustain­ ability’, and their sustainable sourcing is required for the Union battery ecosystem to perform adequately.
(80)
A number of voluntary efforts from actors in the battery supply chain are already in place in order to encourage adherence to sustainable sourcing practices, including the Initiative for Responsible Mining Assurance, the Responsible Minerals Initiative and the Cobalt Industry Responsible Assessment Framework.
However, it is not certain that voluntary efforts to set up due diligence schemes will ensure that all economic operators placing batteries in the Union market abide by the same set of minimum rules.
(81)
In the Union, general requirements on due diligence in relation to certain minerals and metals were introduced by Regulation (EU) 2017/821 of the European Parliament and of the Council (23).
That Regulation does not, however, address the minerals and materials used for battery production.
(82)
Therefore, in view of the expected exponential growth in battery demand in the Union, an economic operator that places a battery on the Union market should set up a battery due diligence policy.
Requirements therefore should be laid down in this Regulation, in order to address the social and environmental risks inherent in the extraction, processing and trading of certain raw materials and secondary raw materials used for the purposes of battery manufacturing.
Such policy should encompass all operators in the supply chain, and their subsidiaries and subcontractors, that extract, process and trade certain raw materials and secondary raw materials.
(83)
When putting in place a risk-based battery due diligence policy, the economic operator should base it on internationally recognised due diligence standards and principles, such as those in the United Nations Guiding Principles on Business and Human Rights, the Ten Principles of the United Nations Global Compact, the United Nations Environment programme (UNEP) Guidelines for Social Life Cycle Assessment of Products, the Inter­ national Labour Organisation (ILO) Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises and the OECD Due Diligence Guidance for Responsible Business Conduct.
Those standards and principles which each economic operator should tailor to its specific context and circumstances, reflect a common understanding amongst governments and stakeholders.
In relation to the extraction, processing and trading of natural mineral resources used for battery production, the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas represents an internationally acknowledged standard addressing the specific risks of gross human rights violations, and a long-standing effort by governments and stakeholders to establish good practice in this area.
(23) Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas (OJ L 130, 19.5.2017, p. 1).