Chinese lithium giant pulls EVs deeper into forced labor glare.
A lithium producer for carmakers including BMW AG and Tesla Inc. is beginning work to assess battery metals projects in Xinjiang, deepening links between electric vehicle supply chains and a region at the heart of human-rights allegations against China.
In Xinjiang, “the resource is at an early stage of exploration and it’s currently uncertain whether there’s suitable projects available for future development,” Ganfeng said. The company pursues a strategy of having projects in multiple countries to help limit the impact of extracting lithium excessively in any single location, it said.
Ties to Xinjiang-exposed suppliers are becoming more problematic for a swathe of industries. The Uyghur Forced Labor Prevention Act, which came into force in the US in June, will block imports unless companies can prove they weren’t made with forced labor. Already, some solar products have been halted over questions about the source of their raw materials.
Tesla will act to end relationships with suppliers that don’t meet standards, or fail to correct issues of concern in a reasonable time frame, according to the report. The new firm is 49% owned by Ganfeng Zhongkai Mining Technology — itself a joint venture between Ganfeng Lithium and Jiangsu Nonghua Intelligent Agriculture Technology Co. — with state-backed Xinjiang Geology and Mineral Investment holding the remainder, according to China’s National Enterprise Credit Informational Publicity System.
In theory, Tesla and other automakers could find a way to keep their relationships with Ganfeng going while avoiding any metals that come from Xinjiang.
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