[HONG KONG] Electric vehicle (EV) battery suppliers, including BYD and EVE Energy, need to step up efforts to switch to clean power at manufacturing sites and curb emissions in supply chains, according to environmental group Greenpeace.
The non-profit’s review of action on emissions in the sector found seven out of 10 major lithium-ion battery producers lacked clear targets for progress in at least one of two key areas, adoption of renewables and the climate footprint of their suppliers.
“Electricity use and raw material sourcing are the two largest drivers of emissions in battery manufacturing,” Greenpeace East Asia campaigner Erin Choi said on Thursday (Jul 10). “The lack of commitments calls into question whether leading battery makers are serious about decarbonisation.”
BYD and EVE Energy did not immediately respond to requests for comment.
Deployment of batteries in vehicles and to support power grids is delivering reductions in emissions in transport and energy, two sectors that are crucial to the prospects of the world meeting net-zero goals, according to BloombergNEF. Even so, technology producers remain under pressure to limit the climate impacts of their own industries.
Many leading suppliers have battery production hubs in China and Poland, where power systems remain heavily reliant on polluting fossil fuels, the report said. “Securing green power is the most effective lever for battery makers to decouple production from dirty grids,” Greenpeace said.
Manufacturers should set specific emissions reduction targets and deadlines for suppliers of carbon-intensive materials, and also offer more transparency in the reporting of their climate data, according to the group.
Contemporary Amperex Technology Co Limited (CATL), the world’s No 1 battery producer and which supplies customers including Tesla, Volkswagen and Ford Motor, is among manufacturers to have put in place stronger climate policies, Greenpeace said.
The company previously reported that direct emissions at battery production sites rose roughly 5 per cent last year from 2023 as output climbed almost a third. CATL is offering incentives to suppliers that cut emissions, founder and chairman Robin Zeng said in May. BLOOMBERG
