Things are heating up in the political arena as we approach election day. Despite former President and current Republican nominee Donald Trump offering some concessions to Elon Musk in exchange for his endorsement, electric vehicles (EVs) remain a more contentious issue than ever.
If anything, misinformation campaigns are intensifying, so we’ll continue to do our part by digging into what’s real and what’s not.
Last month, we delved deeply into the CO2 impact of driving EVs versus cars with traditional internal combustion engines. We demonstrated convincingly that, even accounting for the CO2 emissions from battery production, driving EVs more than compensates for the difference. Even if you live in an area that relies on coal for electricity generation, EVs produce less CO2 than gasoline or diesel-powered vehicles. They are currently a better and cleaner alternative to burning fuel and generating tailpipe emissions—this is an indisputable fact.
Exploring Environmental Impacts Beyond CO2
This month, we’re continuing that thread by exploring the broader environmental impacts of EVs (and, by extension, hybrids). Specifically, we’ll examine the sourcing of some of the more problematic materials used in battery and electric motor manufacturing.
Fair warning: The findings here may not be as optimistic, but our goal isn’t to sugarcoat the truth. Instead, we aim to explore it—along with the reasons to remain hopeful about how the future could improve on the fossil-fuel economy, which has caused its own set of challenges.
Battery Materials
Most batteries in modern EVs use a lithium-ion construction, which might suggest they all have the same composition. In reality, there is considerable variation in the material makeup within the cells that comprise the modules powering EVs.
Still, there are a few common materials used to manufacture modern batteries:
- Lithium: This element gives lithium-ion batteries their name. Australia is the world’s leading producer, but Chile ranks second, where lithium mining has created what the Natural Resources Defense Council described as a “water crisis.”
- Cobalt: Used to enhance a battery’s energy density and stability. The Democratic Republic of the Congo is the world’s top producer, where mining has led to “egregious human rights abuses,” according to Amnesty International.
- Nickel: Used to further increase a battery’s energy density. Indonesia is the largest exporter, but the industry has been implicated in deforestation, soil erosion, and water pollution.
Resource extraction is rarely a pretty process. We source oil through offshore drilling, fracking, and from countries embroiled in or contributing to conflict. As we’ll discuss later, there’s a clearer path toward genuine sustainability with EVs that doesn’t exist in the fossil-fuel industry, but this transition is still in its early stages.
Rare Earth Materials
If the sourcing of batteries seems unsettling, the situation with rare earth materials may be even more concerning.
The electric motors used in EVs and hybrids vary widely in design and technology, but permanent-magnet synchronous motors are generally considered the most advanced. They deliver better efficiency and performance compared to induction motors.
These magnets rely on a few critical elements, such as neodymium and dysprosium. These elements belong to a family of materials called rare earths, which can involve troubling byproducts like uranium.
The rarity and value of these materials have led to questionable extraction practices. In Myanmar, one of the world’s leading sources, entire villages have been devastated by mining operations, with residents often forced into submission.
Reasons for Optimism
The troubling truths outlined above represent the darkest aspects of EV and hybrid manufacturing—a subject many manufacturers are understandably reluctant to discuss.
However, there is room for hope.
Rare earths are often considered the most problematic part of EV production, but there are promising developments. New and safer sources for rare earths are emerging. Neha Mukherjee, a senior analyst for rare earths at Benchmark Mineral Intelligence, notes significant progress in the U.S. and Australia. She points to projects in Elk Creek, Nebraska, and Bear Lodge and Halleck Creek in Wyoming as particularly promising domestic sources.
Additionally, new sources in Africa, Australia, and North America have the potential to lead globally while adhering to better environmental, social, and governance (ESG) practices than many current operations.
Further innovations include high-efficiency motors that don’t rely on rare earths, a goal several companies, including Tesla, are actively pursuing.
Enhancing Transparency and Recycling
Manufacturers are becoming more transparent about sourcing. For instance, Volvo’s upcoming EX90 SUV will feature battery passports, as will Tesla’s Cybertruck. These passports disclose a battery’s materials and sourcing, making recycling easier.
Recycling initiatives, such as those spearheaded by Redwood Materials, are also taking off. Founded by former Tesla Chief Technical Officer J.B. Straubel, Redwood is building facilities to recycle and supply materials for new battery production. Its first facility to produce recycled cathode materials will supply Panasonic and Toyota by next year.
Looking Ahead
While it may take years—or even decades—to establish a circular economy for EVs, the groundwork is being laid. As the number of EVs on the road increases, we’ll rely less on new materials from the earth and more on recovering valuable materials from retired vehicles. Unlike gas-powered cars, EV batteries can even be repurposed for energy storage systems in homes and buildings.
The EV industry’s challenges are undeniable. However, considering the global petrochemical economy, which has been active for over a century and continues to cause significant environmental harm, EVs represent a cleaner, more sustainable future. Addressing current shortcomings is essential, but the potential for progress is immense.
By committing to a sustainable, circular battery economy, we can minimize the trade-offs associated with meeting our energy needs—and move closer to a world powered by clean energy.