Due Diligence Frameworks
A major development was the Global Battery Alliance (GBA) launching the second wave of its Battery Passport pilots in mid-2024. This global program – involving 11 consortia led by major cell manufacturers representing 80% of the EV battery market – is creating digital “passports” for batteries to record their material provenance, carbon footprint, and ESG performance . In November 2024, the GBA unveiled results from these pilots at its annual meeting in Asia, showing the feasibility of harmonized sustainability data reporting for batteries . The pilots developed rulebooks on metrics like greenhouse gas emissions and biodiversity impact, and demonstrated end-to-end traceability for key materials (lithium, cobalt, nickel, graphite, etc.) using blockchain and other tech. The Battery Passport is emerging as a flagship transparency framework, aligning with new EU rules (which will mandate such passports by 2027) while allowing global participation. It serves as a voluntary accountability mechanism for companies to go beyond minimal legal compliance .
Industry standards bodies also ramped up efforts. The Responsible Minerals Initiative (RMI) – an industry association of 500+ companies – rolled out an updated suite of due diligence and audit standards in 2024, covering a broader range of minerals and ESG criteria . In February 2024, the RMI even launched an Investor Network to engage institutional investors in pushing for responsible mineral sourcing, providing them tools to evaluate companies’ supply chain ESG risks . This reflects a growing recognition that investors and financiers are key allies in holding supply chains accountable. Another notable milestone was in the metals trading arena: the London Metal Exchange (LME) enforced its deadline at end-2023 for all listed metal brands to meet OECD-aligned responsible sourcing requirements. By January 2024, the LME moved to suspend 10% of brands that failed to submit audited sourcing reports, as part of its campaign against “tainted” metals from conflict or child labor . Over 90% of brands did comply, indicating broad uptake of OECD due diligence processes in the raw materials sector. This has direct implications for battery materials like nickel, cobalt, and aluminum traded on the LME – smelters and refiners must now prove their supply chains are responsibly managed or face market exclusion . Such market-based enforcement complements government regulations and puts real economic weight behind sourcing standards.
Sources: European Commission; Reuters; SLR Consulting; RCS Global; Global Battery Alliance; Responsible Minerals Initiative; London Metal Exchange; International Energy Agency; CATL news release; Korea MOLIT; U.S. Dept. of Treasury; Mining.com.
