Some may consider sustainability as another wording for environmental development, while others also consider the economic and social impacts. However, regarding batteries, it is important to consider all aspects of sustainability, as battery technology is a key cornerstone in the green transition towards a fossil-free society by replacing products, appliances, and transport means that requires fossil fuels.
It is important to consider all aspects of sustainability, which is in line with the Sustainable Development Goals (SDGs) that aims to: "ensure all human beings can enjoy prosperous and fulfilling lives and that economic, social, and technological progress occurs in harmony with nature." Sustainability and sustainable development are often referred to as the three Ps (People, Planet, and Prosperity).
People: There are significant social and environmental consequences in connection with the extraction of several of the raw materials in lithium-Ion batteries, particularly regarding conflict minerals. Minerals are considered conflict minerals if they are sourced from politically unstable areas and where the minerals trade can be used to finance armed groups, fuel forced labour and other human rights abuses, and support corruption and money laundering. There are several primary raw materials used to manufacture lithium-Ion batteries, which can have adverse impacts on its entire value chain. Cobalt is the most problematic raw material of all listed raw materials, as it is mined mainly in countries with poor regulation and disorganized small pits i.e., mining by hand using rudimentary and basic tools, often without adequate protective equipment. Over 50 percent of the world's cobalt is mined in the DRC (Democratic Republic of the Congo).
Planet: Batteries impact the environment both positively and negatively and environmental impact affects people. Both the pros and cons need to be considered in connection with the increased demand for different types of batteries to avoid rebound effects. The greenhouse gas emissions of producing a battery is about the same as the rest of the car itself, and thus the greenhouse gas emissions from production of an electric car are about twice as much as they are for a car that runs on only an internal combustion engine. In other impacts categories, it is clear that an electric car also produces significantly higher emissions of other types during the production.
Prosperity: Many of the Sustainable Development Goals aim to improve various areas related to the environment, people, and economic opportunities. Economic opportunities aim to provide decent work such as safe working conditions, living wages, compassionate leadership, and economic growth for those in specific communities. From a more strictly company perspective, the economic part is, of course, important. If a company has a deficit, it cannot continue to operate unless it somehow makes a turnaround. A company can focus on social and environmental impacts, but if they do not make any money, they cannot continue their liveable work (social and environment).
To ensure sustainability, the solution must be economically viable. Previously, companies were focused on profits obtained through a linear business model where higher sales equalled higher profits. The high-speed automatic assembly favours linear business models. Sustainability is a business approach to creating long-term value by considering how a given organization operates within the three Ps (People, Planet and Prosperity).
Sustainability is built on the assumption that developing such strategies foster company longevity. Without a focus on sustainability, it can be questioned how long the company can continue to operate as the expectations on corporate responsibility increases. Transparency becomes more prevalent, and more companies recognise the need to act on sustainability. Professional communications and good intentions are no longer enough as green claims are investigated, and greenwashing will hurt the reputation of the company.
Without a broad focus on sustainability, it may become increasingly difficult for companies to compete in the market. These considerations may increase the focus on the Nordics as a suitable place for production, as the green energy supply can help companies fulfil their sustainability goals and increase their market value.