Chinese companies dominate the mining, battery and manufacturing industries. Europe and the United States are trying to keep up with human rights issues.

Last modified on Tuesday, November 30, 2021 at 10.55 EST

When thinking of electric cars, the first name that comes to mind may be Tesla. This Californian company produces the world's best-selling electric car, which was recently valued at $1 trillion. But behind this American success story is a story about the strength of Chinese manufacturing.

Tesla's Shanghai factory now produces more cars than its California factory. Some of the batteries that drive them are made in China, and the minerals that power the batteries are mainly refined and mined by Chinese companies.

As the world transitions to electric vehicles (EV), companies are racing to secure and strengthen their position in the battery supply chain, from mineral mining and processing to battery and EV manufacturing.

The industry has already seen a trend of vertical integration—a company controls multiple steps in the supply chain—to ensure supply and, in some cases, increase transparency.

Battery life is a series of investigations on the impact of electric vehicle supply chains on human rights. From workers in large industrial cobalt mines in the Democratic Republic of Congo to residents of European and Asian continent villages and towns whose environment and lifestyle are affected by mining companies, we look at the impact of the green transportation revolution on humanity.

In the so-called "battery arms race", China is in a leading position.

China is the world's largest electric vehicle market, with total sales of 1.3 million vehicles last year, accounting for more than 40% of global sales. Chinese battery manufacturer CATL controls approximately 30% of the global electric vehicle battery market. Darton Commodities, a specialist cobalt supplier, estimates that Chinese refineries last year supplied 85% of the world's cobalt that can be used in batteries; a mineral that helps improve the stability of lithium-ion batteries.

Most of the cobalt comes from the Democratic Republic of Congo (DRC), where nearly 70% of the mining industry is dominated by Chinese companies.

Driving through the copper-cobalt mine belt in southern Democratic Republic of Congo, Chinese signs are everywhere: entrances to casinos and hotels, entrances to trucks and business premises.

In August, China Molybdenum Corporation (CMOC), a large Chinese mining company, announced an investment of US$2.5 billion (£1.8 billion) to double the copper and cobalt output of its Tenke Fungurume mine, which is already one of the largest mines in the Democratic Republic of Congo. one. Previously, the company acquired 95% of the nearby Kisanfu copper-cobalt mine for US$550 million.

Chinese corporate giant Huayou Cobalt owns or holds shares in at least three copper-cobalt mines in the Democratic Republic of Congo, and is a key participant in all aspects of the cobalt supply chain, from mines to refineries, to battery precursors and cathode production .

But according to Congolese workers employed in the Congo, China’s dominance in the Congo’s copper and cobalt mines comes at a price.

"The Chinese treat the Congolese very badly. They like to insult us. They like to raise their voices. You will be punished even if it is a small mistake. The Chinese are the bosses who control the Congolese," a worker at Huayou Mining Said that the mine is majority-owned by a Chinese consortium including Huayou Cobalt.

Workers at Sicomines claimed that their wages were lower than those of Chinese workers doing the same job and that they were treated with degrading treatment by Chinese supervisors.

"It was the same as in the colonial period, but now we are under Chinese rule," another worker said.

However, Amnesty International, which is investigating human rights violations in the informal mining sector of the Democratic Republic of Congo, said that the nationality of the companies that dominate the electric car market is not their main concern.

"The problem is that many Chinese mining companies refuse to be transparent about their operations, but the human rights issues related to cobalt mining in the Congo (DRC) have not appeared on the Chinese: Congo (DRC) has long had foreign companies coming to Amnesty International. Said Mark Dummett, the organization's project director.

"Amnesty International is very concerned about the impact that electric vehicle battery mining will have on communities around the world; if top brands do not use their influence to demand that these new global supply chains be established in a manner that respects human rights and environmental rights, it may be possible Cause devastating consequences."

Chinese mining companies point out that they have contributed to the income and local communities of the Democratic Republic of Congo while working in a challenging environment.

A Chinese manager said: "It is very frustrating to cooperate with the Congolese government. This is the most corrupt country."

Analyst Christian-Geraud Neema Byamungu said that labor laws are not always respected, and corruption is widespread throughout the country, which may create an environment where companies are unwilling to abide by the rules.

Some car and battery manufacturers have begun to reduce the amount of cobalt in batteries, in part to avoid the legal and reputational risks associated with cobalt in the Democratic Republic of Congo. Nickel-rich batteries are seen as a way forward, but the Chinese companies that dominate cobalt mining in the Democratic Republic of Congo—Huayou Cobalt and Luoyang Molybdenum—are also increasing their investment in nickel mining and processing in Indonesia, which Indonesia owns The world's largest nickel reserves, up to 72 million tons. This means that China is now the world's largest nickel market producer, beating the competition from Europe and the United States.

Pius Ginting, Executive Director of Action, said: "China will become a major player because they have established links with the country's market-and compared to Europe, the price of nickel exports is lower, because Chinese companies are known for their cheap labor. "Ecology and People's Emancipation (AEER), an Indonesian environmental NGO.

Recently, starting from the Democratic Republic of Congo, people have been working hard to resist China's dominance.

In May of this year, when Félix Tshisekedi, President of the Democratic Republic of the Congo, visited Kolwezi, the central city of the Congo’s copper-cobalt belt, he said: “People come to the Congo empty-handed and become billionaires when they leave. We are still poor."

The Democratic Republic of the Congo recently announced a review of some of its largest mining contracts, including a $6.2 billion transaction that allowed a Chinese consortium to obtain majority control of Huagang Mining in 2007.

In Europe, companies have also begun to gain China's leading advantage. According to data from Darton Commodities, by the end of this decade, the continent is expected to have 28 factories producing lithium-ion batteries, and the production capacity will increase by 1440% compared to 2020. This growth was driven by companies such as Britishvolt in Northumberland and Northvolt in Sweden, as well as Asian companies that expanded production to Europe.

However, European investment in mining and the production of battery precursors and cathode materials has not kept up, Dutton's Andris Gerbens said. "China will eventually become less dominant. Nevertheless, it will still be an important player," he said.

However, even though US President Joe Biden announced in April that he would invest US$174 billion to "win the electric car market," he still lags behind his US$2 trillion infrastructure package, even though it has since scaled down.

Simon Moores, chief executive of Benchmark Mineral Intelligence, told the US Senate committee in June that China builds a battery super factory every week, while the US builds one every four months.

He warned: "A new global lithium-ion economy is taking shape, but any ambitions for the US to become a leader... will only continue to move forward and be surpassed by China and Europe."

A spokesperson for Luoyang Molybdenum in the Democratic Republic of the Congo said: "We are committed to providing all employees with a safe, healthy and decent working environment, and attach great importance to protecting the rights and interests of employees." The spokesperson said that the company is committed to complying with international labor conventions. And local labor laws, adding that all state employees in the Democratic Republic of the Congo are union members.

Sicomines itself did not respond to multiple requests for comment. However, Huayou Cobalt said in a statement, “As a responsible company, Huagang Mining strictly abides by the laws and regulations of the Democratic Republic of the Congo, respects human rights, and practices best labor practices.”

This article was revised on November 30, 2021 to correct the name of Pius Ginting.