Introduced more than a century ago, electric vehicles (“EVs”) are regaining popularity today as more environmentally conscious consumers are aware of their contribution towards carbon neutrality. In recent years, we have begun to see significant policy support from the public and private sectors towards the mass production of electric vehicles and investments in charging stations, with giant automakers such as Volkswagen, General Motors and Toyota planning to phase out fossil fuel-powered cars in the next 10–15 years. Nevertheless, many are questioning the actual environmental impact and economic practicality of electric vehicles for valid reasons. Researchers at German thinktank Ifo Institute for Economic Research even suggest that the CO2 emissions of battery-electric vehicles are in the best case slightly higher than those of a diesel engine. Doubts were also cast over the sustainability of the supply of crucial commodities for lithium-ion battery production such as lithium, cobalt and nickel.
Unlike fuel-powered cars, EVs draw all (or most) of their power from the national grid, therefore the lifecycle carbon emissions of EVs very much depends on the carbon intensity during the generation of electricity. In general, EVs repay their ‘carbon debt’ during usage by using lower CO2 emissions on the road to offset the higher CO2 generated on the assembly line, mainly on batteries. In countries such as Iceland with about 80% energy supply derived through low carbon sources (the sum of nuclear and renewable sources), electric vehicles beat conventional vehicles by large margins over grams CO2-equivalent emissions per kilometer (g/km), but when it comes to countries that still have a high dependence on non-renewable energy sources such as Australia, the figures remain highly debatable and varied. Disparities in CO2 emissions for EVs were also prevalent between different regions in large countries such as the United States. Another challenge faced by researchers during the calculation of lifecycle emissions is the lack of equivalent versions of electric cars and conventional cars. Nonetheless, neatly compiled data by researchers such as Jessika Trancik, professor of energy studies at MIT, helps us understand and compare the CO2 emissions and costs of various types of vehicles under different circumstances.
There are many approaches to reduce the carbon footprint of EVs. For instance, BMW’s wind-powered plant in Leipzig and Tesla’s solar-powered Nevada Gigafactory show the efforts made by carmakers to cut carbon emissions during the manufacturing process to boost corporate ESG and to increase cost-effectiveness. Tesla’s CEO, Elon Musk has also promised to disconnect all “supercharger” locations from the electricity grid and fully rely on solar power in the future. Continual research and improvements on motor efficiency and battery capacity are also taking place as pure EV makers including Tesla, NIO and BYD compete for market share.
Some studies such as a white paper by the International Council on Clean Transportation were more optimistic about the reduction of CO2 emissions by electric vehicles. Even in countries such as China which relies on coal for most of its energy, EVs were estimated to emit up to 45% less CO2 than their fuel-burning counterparts. Nevertheless, most studies show that under power grids with a medium-to-high percentage of fossil fuel usage, EVs have a limited edge over smaller and more efficient diesel or hybrid cars on lifecycle CO2 emissions. Many researchers and advocates point to the importance of decarbonization of the power grid to ensure that all ranges of EVs can contribute their part towards reducing greenhouse gas emissions. As most countries have already entered the legally binding Paris Agreement, the world as a whole is expected to have cleaner power grids in the future as governments increase the share of low carbon sources in the energy mix to meet carbon emission reduction targets.
“The reason electric vehicles look like an appealing climate solution is that if we can make our grids zero-carbon, then vehicle emissions drop way, way down, whereas even the best hybrids that burn gasoline will always have a baseline of emissions they can’t go below.”
— Jessika Trancik, professor of energy studies at M.I.T.
The metals needed in a Lithium-ion (Li-ion) battery include lithium, cobalt and nickel. As demand for these metals surges due to the rollout of more EV models, the mining process involved to obtain them has gained public attention.
Lithium, which is mined mainly in salt flats in Argentina, Bolivia and Chile, requires huge amounts of groundwater to pump out the brine (saltwater) from drilled wells — around 2 million liters of water per tonne of lithium extracted. Such mining practices have deprived indigenous farmers of their access to water and have caused tensions between the local community and mining companies. According to a report by Friends of the Earth, lithium extraction inevitably harms the soil and causes air contamination.
Nickel is mined from two types of deposits — sulfide and laterite. Laterite nickel, which is found mostly in equatorial regions such as Indonesia, the Philippines and Brazil, has detrimental effects on the environment as the clearing of tropical rainforests are required to obtain the widespread and low-grade laterite ore. This inevitably contributes to the various environmental problems caused by loss of vegetation covers, such as loss of biodiversity, soil erosion and even destruction of coral reefs around smaller islands where the laterite ore is mined. The extraction of laterite nickel requires substantial amounts of energy. Additionally, sulfide nickel, albeit having a relatively lower environmental impact during mining, produces sulfur dioxide, a toxic air pollutant, during extraction. Although most of the nickel currently used in Li-ion batteries come from sulfide nickel mines, they have limited sources and are difficult to scale up. Furthermore, the increased demand for sulfide nickels for EV batteries may force other industries to rely more on laterite nickel and this will exacerbate its environmental impacts.
“Most consumers are only aware of the ‘clean’ aspects of electric vehicles. The dirty aspects of the production process are out of sight.”
— Pamela Coke-Hamilton, Director of International Trade at UNCTAD.
Cobalt mining has both environmental and ethical dilemmas.
Cobalt mining produces hazardous tailings and slags that can leach into the environment. Around 70% of the world’s cobalt supply is mined in the Democratic Republic of the Congo (DRC), a country currently facing complex socio-economic issues. Up to 30% of cobalt sourced from the central African nation comes from artisanal and small-scale mining (ASM), where untrained miners dig cobalt by hand without any protective equipment. Not only that, some 40,000 children work in extremely dangerous conditions, according to UNICEF, the UN’s children’s agency. As exposure to cobalt, a possible carcinogen, can lead to a series of health problems, artisanal mining is detrimental to the wellbeing and development of the children involved in it. Ethical issues concerning child labor in Congolese mines have attracted the attention of human rights organizations such as Amnesty International, which urged companies to investigate and improve their cobalt sourcing practices.
“The energy solutions of the future must not be built on human rights abuses. ”
— Seema Joshi, Head of Business and Human Rights at Amnesty International
Approaches to deal with the environmental effects from the sourcing of much-needed materials for EV batteries are focused on 2 areas: the improvement of the extraction and mining process, and the recycling of Li-ion batteries.
Promising new techniques to reduce pollution and CO2 emissions are emerging for lithium mining. Examples include the geothermal lithium mining approach currently being developed by Cornish Lithium Ltd and the Direct Lithium Extraction (DLE) technique which uses chemical sieves to filter lithium chloride from the brine. For the extraction process, the safe disposal or conversion of waste products has to be carried out. Companies need to prioritize suppliers which have proven track records of environmental responsibility. The global community should show solicitude for ethical issues surrounding cobalt supply in the DRC as it is a reflection of more deeply rooted problems of underdeveloped countries, which are also most vulnerable to climate change. For example, support for humanitarian projects in the DRC can improve healthcare and education for children to help eliminate child labor.
Although global lithium reserves are estimated to last 185 years, the recycling of Li-ion batteries is crucial to reduce its carbon footprint. Currently, less than 5% of Li-ion batteries are recycled — their lead-acid counterparts have a recycling rate higher than 90%. The lack of a remanufacturing ecosystem and fluctuating commodity prices have impeded the development of profitable, large-scale recycling of Li-ion batteries. Investments in more effective ways to recycle Li-ion batteries, such as automation, are crucial to lowering the cost of recycling them. Carmakers should design their batteries with recycling in mind to make the batteries easier to disassemble. Another way to make use of old Li-ion batteries is to use them in energy storage for solar or wind power.
If EV companies are to convince the public that electric vehicles are the future and a net gain for planet Earth, they have to ensure that the materials for the production of EVs are sourced sustainably and ethically. Besides, carbon emissions in the manufacturing process of electric vehicles, especially batteries, have to be continually improved. Transparency of companies in revealing data about the environmental impact of their products, such as releasing Life Cycle Assessment(LCA) reports and carrying out thorough supply chain investigations, is of utmost importance as consumers become more aware of environmental and ethical concerns of EVs. Policymakers should monitor the development of EV technology and production costs to determine the appropriate amount of financial incentives given to EV buyers from time to time. This is vital to ensure the gradual detachment of EVs’ reliance on government incentives to compensate for a higher price, as battery costs continue to go down.
To conclude, electric vehicles are not a panacea to global warming as there are still many environmental impacts associated with its development. However, EV technology has huge potential for improvement to minimize these impacts. All parties have the responsibility to give impetus to the development of a sustainable, inclusive, and innovative electric vehicle industry.
This article is written by me, Ng Yin Joe, as a contribution to the Analytical Research on International Affairs and Policies Society (ARIAPS), my school club, which promotes students’ understanding of current affairs and policies. I would like to thank fellow members and my teachers for their feedback on this article. Any feedback or suggestions from the readers is much appreciated.
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Sources of images used in this article, by order:
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