2024 ESG Report FINAL - Report - Page 17
Low-Carbon
EV mandates are infeasible and require a seismic surge in mineral production (i.e.,
lithium's global demand is predicted to increase 40-fold from 2020 to 2040).36
• Foreign countries of concern dominate the entire EV battery supply chain (including mining, material
processing, cell components, battery cells and EV manufacturing). Certain locations where these activities
take place have been associated with allegations of human rights violations, forced and child labor, and
environmental degradation claims.37
• The current U.S. Administration is attempting to shift mining and processing of critical minerals to domestic
sites with more regulations, but these new mining sites often face signi昀椀cant opposition and permitting
obstacles, and could take an average of 16.5 years to be fully functional.38
China dominates the downstream and midstream global EV battery supply chain36
Geographical distribution of the global EV battery supply chain, 2023
Mining
Cell components
Material processing
100%
Battery cells
EVs
Source:
International
Energy Agency
(2024), Global
Critical
Minerals
Outlook 2024,
page 30, IEA,
Paris.
75%
50%
25%
0%
Li
Ni
China
Co
Europe
Gr
United States
Li
Ni
Japan
Co
Korea
Gr
DRC
Cathode Anode
Australia
Chile
Batteries
Indonesia
Russia
EVs
Other
Low-carbon fuels such as renewable diesel and ethanol are
available today and can reduce GHG emissions right now.
EV mandates are not affordable for many working families and will limit their physical
and economic mobility.
• Current plans for EVs in California impair access to reliable
and affordable vehicles for low- and moderate-income
communities.39
46% of U.S. EV drivers want to go
back to gas-powered cars.40
• EV mandates will disproportionately affect lower-income people
by pushing them out to farther suburbs, increasing costs of living,
and limiting job opportunities and school options.39
More than 68% of U.S. adults believe
a mix of fuels should be used.41
"Our community members cannot afford $40,000 electric vehicles, or pay
more than $15,000 to replace the batteries in a 'used' electric vehicle."
- The Two Hundred, civil right leaders committed to closing the wealth gap
of hard-working families and individuals.
Instead of EV mandates, we support the use of transportation choices
and are currently supporting the development of a wide range
of solutions to reduce GHG emissions, from cellulosic ethanol to
sustainable aviation fuel and a tailpipe CO2 onboard capture system.
Environmental, Social and Governance Report •
17
