Audited raw materials and less cobalt in future battery cells.

The heart of a battery is the battery cell. Its production involves a wide range of materials – including cobalt and lithium. Both are at times strongly criticized in terms of human rights as well as environmental aspects.

Our aim is to further reduce the use of critical raw materials. In the coming generations of battery cells, for example, the cobalt content is already being reduced to less than ten percent. The long-term objective is even to be able to dispense with materials such as cobalt entirely through post-lithium-ion technologies with new material compositions.

Procurement of battery cells with cobalt, lithium, nickel, copper, graphite and manganese from audited sources

Part of a comprehensive approach being taken by Mercedes-Benz for its overall battery strategy is a decision by the Mercedes-Benz Procurement promoting the socially acceptable and environmentally sound extraction of raw materials in the battery cell.

The company will in future only source battery cells with cobalt, lithium, nickel, graphite, copper and manganese from mining-audited sites. To achieve this, the Mercedes-Benz Procurement will in future only work with suppliers who purchase raw materials from audited sources in accordance with the recognized mining standard of the Initiative for Responsible Mining Assurance (IRMA)  and who comply with their due diligence obligations along the supply chain in accordance with OECD guidelines. The most important criteria of this standard include both human rights aspects and the environmentally friendly mining of raw materials. The standard also takes into consideration further social and societal aspects that are related to the consequences of industrial mining. The supply chains will in the future also be regularly monitored.

Since 2021, we have been using IRMA as a precondition in all battery-related awardings and require our suppliers to exclusively use cobalt, lithium, nickel, graphite, manganese and copper from IRMA-audited mines in newly commissioned scopes of supply. Because IRMA is still at the beginning of industry-wide application, we are relying on transitional periods. With our clear requirement, we accelerate the establishment of the standard under realistic conditions: We are gradually moving towards increasingly responsible practices with the medium-term goal of robust certification. For example, we expect at least proof of "IRMA Transparency" at the start of production of the corresponding purchased part from the supplier and three years later the achievement of "IRMA 50" or higher. For details on the IRMA ratings described, see here .

Currently (as of 09/22) there are currently 65 mining companies with 76 locations in various phases of the IRMA process. More information can be found here .

With the strategic decision to work only with suppliers who agree to the requirements of IRMA in the future, Mercedes-Benz seeks to ensure that its products contain only materials that have been mined and produced without violating human rights or environmental standards.

Mercedes-Benz deliberately has decided not to generally exclude countries of origin viewed as high-risk - such as the Democratic Republic of the Congo - as sources of supply. Instead, the holistic approach aims to improve the local situation for the people working there and to strengthen their rights. This is the only way to achieve long-term social changes.

By doing so, the company is also following the recommendation of non-governmental organizations, governments and other relevant interest groups not to withdraw from high-risk countries in general. The principle of “using empowerment before withdrawal” is a maxim of action that can be found in different forms in various frameworks for respecting and upholding human rights, on which Mercedes-Benz is oriented, for example in the National Action Plan on Business and Human Rights of the German federal government.

Already in 2018, Mercedes-Benz commissioned the auditing and advisory firm RCS Global  to establish transparency over the complex cobalt supply chains behind battery cells and to audit these at every stage in accordance with OECD Due Diligence. By June 2022, 236 companies had been identified and 154 audits and 67 training courses had been carried out after a corresponding risk assessment. In 2022, due to the increasing due diligence requirements and increased transparency in the battery cell supply chains, MB decided to continue its audit activities in cooperation with RCS Global and to expand beyond cobalt to include the raw materials lithium, nickel, copper, graphite and manganese. In addition, the scope of human rights due diligence will be expanded to include environment-specific aspects. The new phase of the project is initially scheduled to run until mid-2025.

This article was updated on July 16, 2023 to include new information about the cobalt supply chain.