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Article

21 Feb 2020

Author:
Reuters

Chile: Volkswagen and Daimler respond to supply chain concerns by launching study into sustainable lithium mining for electric vehicles

“Exclusive: Germany's Volkswagen and Daimler push for more 'sustainable' Chile lithium”, 11th February 2020

…German automakers Volkswagen…and Daimler…have launched a study to push for more “sustainable” lithium mining in Chile…a sign of growing supply chain concerns ahead of an expected electric vehicle boom…

But concerns over sustainability have long plagued Atacama’s miners, which extract the metal from pools of brine beneath the world’s driest desert. Residents and environmental groups worry about potential damage to a regional ecosystem home to an ancient indigenous culture, lagoons inhabited with rare flamingos and a booming tourism industry.

Lobbying records show a team from German development agency GIZ and the public-private Fundacion Chile met with Cristóbal De La Maza, chief of top Chilean environmental regulator SMA, early this year to formally present plans for the “feasibility study.”

“This project is driven by the Volkswagen and Daimler companies,” the filings read. “The growing importance of batteries has made the sustainability of lithium a key priority for these companies.”…

Pressure is mounting on German carmakers to fast-track production of electric vehicles to meet increasingly stringent European Union anti-pollution rules. Volkswagen alone has staked its future on a $91 billion plan to profitably mass-producing zero-emission vehicles…