Major producers of electric vehicle batteries require cleaner energy grids to achieve decarbonization, according to a new report.
In a recent report, environmental organisation Greenpeace has highlighted the importance of locating electric vehicle (EV) battery gigafactories in regions with low-carbon electricity grids. This move aims to minimize the carbon footprint of battery production and maximize the climate benefits of electric vehicles.
According to Greenpeace, the manufacturing stage of battery production is responsible for roughly one-third of cradle-to-gate carbon dioxide (CO2) emissions. The production of cathode materials is another significant contributor to the carbon footprint of lithium-ion batteries.
The report found that emissions intensity was highest in Poland, followed by Malaysia and China. In contrast, the carbon intensity of electricity was lowest in France, where NMC battery cells could achieve as low as 52 kilogrammes of carbon dioxide equivalent per kilowatt hour (kg CO2e/kWh).
Three other battery manufacturers - Samsung SDI, SK On, and Sunwoda - have also set 100% renewable energy targets, following the lead of CATL, LGES, and Panasonic Energy, which have both committed to 100% renewable electricity for their operations and established carbon reduction targets for their supply chains.
China, the world's largest producer of batteries, has been responsible for more than 70% of all EV batteries ever produced. However, the country's high reliance on fossil fuels for electricity entails higher embedded carbon emissions in EV battery manufacturing, undermining the climate benefits of electric vehicles.
Manufacturing emissions in China and Poland are two to four times higher than comparable European facilities due to the high carbon intensity of their national grids. Shifting production from China to Europe yields emissions reductions of 32 to 60 percent, with France attaining the greatest benefit due to its low-carbon grid.
Southeast Asia is highlighted as a promising region, benefiting from abundant low-cost renewable resources and government incentives that support large-scale zero-emission technology production, including gigafactories for batteries and hydrogen.
Greenpeace East Asia campaigner Erin Choi urges all battery makers to set decarbonisation targets for electricity use and raw material sourcing. The report recommends that policymakers and industry should prioritize siting gigafactories in regions with cleaner grids, or invest in dedicated renewable energy sources for on-site power.
The report by Greenpeace states that global manufacturers of electric vehicle (EV) batteries need to source their energy from cleaner electricity grids to lower the carbon footprint of their products. This move is crucial to meet the goals of the United Nations Sustainable Development Goals (SDGs) 7 (Energy) and 12 (Consumption), and 13 (Climate).
In conclusion, the key criterion emphasized is to locate gigafactories in places with clean, renewable electricity grids to minimize overall carbon emissions from battery production. Southeast Asia is mentioned as a leading example in this regard, laying groundwork for clean energy generation and batteries, improving their carbon impact relative to other fossil-fuel reliant regions.
- Greenpeace emphasizes that global manufacturers of electric vehicle (EV) batteries should source their energy from cleaner electricity grids to lower the carbon footprint of their products.
- The report recommends that battery makers set decarbonisation targets for electricity use and raw material sourcing, as urged by Greenpeace East Asia campaigner Erin Choi.
- Policymakers and industry are advised to prioritize siting gigafactories in regions with cleaner grids, or invest in dedicated renewable energy sources for on-site power.
- The report found that manufacturing emissions in China and Poland are two to four times higher than comparable European facilities due to the high carbon intensity of their national grids.
- Shifting production from China to Europe yields emissions reductions of 32 to 60 percent, with France attaining the greatest benefit due to its low-carbon grid.
- The production of cathode materials is another significant contributor to the carbon footprint of lithium-ion batteries, according to the report.
- Southeast Asia is highlighted as a promising region, benefiting from abundant low-cost renewable resources and government incentives that support large-scale zero-emission technology production, including gigafactories for batteries and hydrogen.
