CATL teams up with RCS Global Group to develop responsible battery supply chain

CATL Headquarters, Ningde, China, 19 October 2020

Contemporary Amperex Technology Co. Limited (CATL) and RCS Global Group (RCS Global) have announced the launch of a landmark responsible sourcing partnership covering CATL’s cobalt, lithium and graphite suppliers. The partnership will also expand to cover aluminium, copper manganese and nickel suppliers in the future.

Under the scope of the partnership, RCS Global’s industry-leading ESG audit practice will identify CATL’s suppliers from battery to mine or recycler. RCS Global also will assess these suppliers for conformance with environmental and human rights requirements and work with CATL and the suppliers to enhance the development of a responsible supply chain.

The partnership provides a robust, data-driven basis for CATL to engage its suppliers and sub-suppliers to better explain and monitor adherence to responsible production and sourcing requirements in its supply chain. It also allows CATL to more effectively follow up on agreed corrective actions and improvements following the RCS Global audits.

The partnership will enable CATL to become an industry leader in responsible sourcing by ensuring the continuous improvement of its suppliers’ performance in responsible production and sourcing. Suppliers, in turn, are benefitting as the process allows them to demonstrate their performance improvement to the market, while being given access to best practice guidance. In doing so, the partnership aligns CATL’s risk management approach with best practice expectations within the fast-growing electric vehicle (EV) market, enabling CATL’s long-term sustainable development.

As a global leader in the development and manufacturing of lithium-ion batteries with businesses covering R&D, manufacturing and sales of batteries for new energy vehicles and energy storage systems, CATL is committed to taking environmental and social responsibility seriously by establishing long-term and stable relationships with suppliers as well as improving social and environmental conditions in the supply chain. In cooperation with RCS Global, CATL has already completed due diligence audits on its suppliers for stakeholders including Volvo Cars, Groupe PSA, Renault Nissan Mitsubishi Alliance, Volkswagen Group and others, to increase the transparency of the mineral supply chain and reduce uncertainties by identifying risks and taking timely risk-mitigation measures at an early stage. Also, 38 of CATL’s core suppliers have undergone training to improve their responsible mineral due diligence management capacity. CATL will continue to work closely with stakeholders and partners in the supply chain to jointly address global issues.

About RCS Global Group (from www.rcsglobal.com)

RCS Global is the leading audit, advisory and training firm progressing our partners’ ESG performance and responsible sourcing excellence at every tier of the global natural resources value chain. RCS Global’s partners not only with the leading OEMs in the automotive and ICT sectors including but not limited to Daimler, Volkswagen Group, Ford, FCA, Polestar, Groupe PSA, Volvo Cars, but also with key battery suppliers and other leading businesses like Johnson Matthey, Huayou Cobalt or Rio Tinto at the refining and mining stages of the value chain.