Social Sustainability in Raw Material Sourcing for Electric Vehicles

Motivated by the shift toward sustainable mobility and increased demand for ethically sourced raw materials, this study examines the social sustainability of different sourcing strategies for aluminium and cobalt in electric vehicle (EV) products. These materials are essential components for batteries and lightweight parts in EVs. A Social Life Cycle Assessment (S-LCA) was conducted in conjunction with OpenLCA and the Product Social Impact Life Cycle Assessment (PSILCA) database. The assessment is based on the United Nations Environment Programme (UNEP) Guidelines from 2020 with a focus on key stakeholder categories. In this study, four cradle-to-gate sourcing strategies are evaluated and labelled as Case 1 through Case 4 in the assessment. The results show significant differences across the scenarios. The local sourcing strategy for aluminium in Australia (Case 1) is associated with lower social risks, whereas the local sourcing of cobalt in Russia (Case 2) indicates higher social risks. Global sourcing strategies involving Guinea and Brazil for aluminium (Case 3) and the Democratic Republic of the Congo (DRC) and China for cobalt (Case 4) demonstrate increased social risks. The impacts can be up to 15 times greater, depending on the location. These findings highlight regional variations in social risks associated with the sourcing of raw materials. The results highlight the importance of implementing corporate due diligence and socially responsible procurement practices within raw material supply chains through integrating an S-LCA into sourcing strategies. This approach also supports some of the Sustainable Development Goals. Overall, this study provides practical insights for industry and policymakers, thereby enriching our understanding of social sustainability.