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Research by Infyos finds that companies accounting for 75% of the global battery market have connections to one or more companies in the supply chain facing allegations of severe human rights abuses. Most major battery manufacturers and end batteries applications are exposed including many of the world’s largest automotive, energy storage and electronics brands.
Key Takeaways:
- AI supply chain risk platform Infyos analyzed thousands of data sources revealing many of the world’s largest automotive, energy storage, consumer electronics, and heavy industry companies use lithium-ion batteries that have human rights abuses in part of the supply chain.
- Most of the allegations of severe human rights abuses involve companies who are mining and refining raw materials in China that end up in batteries around the world, particularly in Xinjiang Uyghur Autonomous Region (XUAR) in northwest China.
- These human rights abuses and lack of supply chain visibility are likely leading to breaches in the United States’ Uyghur Forced Labor Prevention Act (UFLPA) and the EU Battery Regulation law designed to make the battery industry more sustainable and accountable.
- Violations mean battery products could be at risk of being blocked from the market since regulators, banks and lenders are mandating enhanced supply chain visibility and risk data. This could result in divestment from investors due to ESG requirements.
- Infyos has developed an AI supply chain risk platform for customers of lithium-ion batteries to track their supply chain and mitigate the risk that they are exposed to human rights abuses.
- Infyos’ AI algorithms compile data from across the global battery supply chain which is meticulously analyzed and verified against in-depth data confidence criteria.
