In our previous article, we explored the complex supply chain network of the U.S. auto manufacturing. This system manages everything from raw material procurement to vehicle production and final delivery to customers. Over time, the globalized supply chain of American car brands has blurred the identity, making them less American. Meanwhile, the industry’s shift toward Electric Vehicles (EVs) for sustainability and circular economy benefits has transformed supply chain dynamics. The rising demand for rare earth elements (REEs) in EV batteries and motors has increased dependence on a few resource-rich regions. Despite this push for sustainability, there are still many unseen challenges in auto manufacturing sustainability and business ethics. In this article, we will uncover such failures and highlight how automakers promote sustainability narratives while following business practices that contradict these claims.
How Green Are Electric Vehicles?
Almost all the world’s governments and automakers are promoting and committing to shifting towards electric vehicles. They consider that EVs are the key technology to reduce the use of fossil fuels and fight climate change. According to the New York Times article, General Motors aims to stop selling new gasoline trucks by 2035. Similarly, Volvo set a further strict deadline of 2030 to replace all vehicles with electric vehicles.
But as electric vehicles replace gasoline vehicles, there is still a question left: Are these electric vehicles as green as they are promoted? The answer lies in the three basic questions below.
- Does the EV manufacturing process emit less carbon emissions than gasoline vehicles?
- Do EVs emit less emissions than gasoline cars over the life cycle?
- How is the electricity made to charge these vehicles?
The short answer to the first question is no. Electric vehicles rely on rechargeable batteries like lithium-ion batteries as a power source. Manufacturing such batteries is the most complex, expensive, and energy-intensive process. Lithium-ion batteries use raw materials like cobalt and lithium, and the mining and transportation of these materials demands high energy. That’s the reason why the manufacturing of EVs emits more carbon compared to gasoline vehicles. According to CNBC, the carbon emissions in EVs’ manufacturing are 30% to 40% more than gasoline vehicles. Most of these emissions come from the battery production process, yet electric vehicle manufacturers do not disclose this information to consumers.
These higher environmental costs in EVs manufacturing are offset by their high efficiency over time. It is proven that the total emissions per mile for electric vehicles are lower than emissions from gasoline-fueled combustion engines. MIT’s Insights into Future Mobility study illustrates the difference between the amount of carbon emissions among gasoline, hybrid, plug-in hybrid, and battery electric vehicles. The study outlines that average gasoline cars emit over 350 grams of CO2 per mile driven over their lifetime. The hybrid and plug-in hybrid emit around 260 grams per mile, while the fully electric/battery vehicles emit 200 grams per mile of CO2.
Such low emissions from the electric cars’ tailpipes don’t depend on technology only. It also highly relies on the source used to produce electricity that charges the car. Assume that electric vehicles in the United States charge their batteries from the average grid station, which typically includes a mixed fuel (fossil fuels and renewable energy). In this case, EVs are much greener than gasoline cars. On the other hand, if the electric vehicles are charged at coal-fueled electric power plants, this can make the situation worse. An electric car charged from a coal-based electricity plant will produce more carbon emissions than gasoline-fueled cars. New York Times articles give a simple example of electric cars in Pittsburgh. It says that if EVs in Pittsburgh are charged over the night based on electricity coming from nearby coal power plants, then the climate benefit won’t work. It will even make a negative contribution to GHG reductions. These are a few factors and unseen challenges in auto manufacturing sustainability that companies avoid telling common buyers.
Environmental & Human Rights Issues in Batteries Manufacturing:
Like other batteries, the lithium-ion batteries in electric vehicles rely on rare earth elements like lithium, cobalt, platinum, and others. Mining these elements, especially cobalt, has always been problematic for the environment and human rights. The mining of cobalt produces hazardous slags and tailing that penetrate the environment. Moreover, the process of smelting, used to extract metals from their ores, can release sulfur oxide and other harmful air pollutants. The National Center for Biotechnology Information states that cobalt in the air causes diseases like asthma, skin sensitization, and interstitial lung fibrosis.
The New York Times article outlines that around 70% of the global cobalt supply comes from the Democratic Republic of Congo, with a significant portion extracted from unregulated “artisanal” mines. In these mines, workers, including many children, use only hand tools to dig for cobalt, facing severe health and safety risks.
Similarly, lithium, another essential mineral, is primarily sourced from Australia or salt flats in Argentina, Bolivia, and Chile. These operations rely heavily on groundwater to extract brine, depleting water resources vital to Indigenous farmers and herders. The high-water demand for battery production makes manufacturing electric vehicles approximately 50% more water-intensive than traditional internal combustion engines.
Additionally, rare earth deposits, largely found in China, often contain radioactive materials. Mining such minerals releases radioactive water and dust that is quite hazardous for miners and surrounding communities.
Auto manufacturers have pledged to remove “artisanal” cobalt from their supply chains and develop cobalt-free or reduced-cobalt batteries. However, this technology is still in progress. Given this widespread use of artisanal mines, such commitments by auto manufacturers look unrealistic.
Hidden Challenges of EV Battery Recycling:
According to the MIT Climate Portal Report, recycling electric vehicle (EV) batteries is a complex and energy-intensive process due to their non-standardized designs and hazardous materials. Each battery pack varies in size, shape, and composition, making dismantling both costly and dangerous. The presence of flammable lithium-ion cells increases the risk of fires, requiring careful discharge before recycling. Additionally, while valuable metals like nickel and cobalt can be recovered, other materials, such as plastics and aluminum, are often discarded. These materials contribute to landfill waste and environmental concerns.
Moreover, the recycling process itself demands significant energy and resources, making it less sustainable. Pyrometallurgical methods rely on extreme heat to extract metals, consuming large amounts of energy. Hydrometallurgical techniques use chemical solutions but require additional breakdown steps, further increasing costs and complexity. Although repurposing old EV batteries for energy storage is an option, assessing battery health remains a major challenge. With the growing demand for electric vehicles, mining for raw materials will still be necessary. This limits the sustainability factor of battery recycling.
Conclusion:
In conclusion, while automakers promote electric vehicles as a sustainable solution, there still remain some significant challenges. The mining of rare earth elements like cobalt and lithium raises environmental and human rights concerns. Additionally, the complex and energy-intensive process of battery recycling further undermines sustainability claims. As the demand for electric vehicles grows, these hidden issues must be addressed. A true shift toward sustainability requires transparency and responsibility in the entire manufacturing and recycling process. Without these efforts, the environmental benefits of electric vehicles may remain limited.
Have any questions or want to know more about unseen challenges in auto manufacturing sustainability? Please reach out to the COBE Ethics Chair at COBEEthics@boisestate.edu. Explore the College of Business and Economics (COBE) website to learn more about undergraduate and graduate degree programs in economics and supply chain management.