Nineteenth International Conference on Environmental, Cultural, Economic & Social Sustainability

Abstract

Climate considerations are increasing the demand for lithium-ion batteries, but global battery value chains have resulted in issues of environmental and social sustainability, and material sufficiency, creating interest in more localized and circular value chains. EU wants to expand its battery industry in order to improve energy self-sufficiency, and Finland aims to become a leader in sustainable battery innovations. We explore the challenges and opportunities of creating a localized, circular and sustainable lithium-ion battery value chain in Finland. Much of the raw materials for lithium-ion batteries are extracted in the global south, where mining has resulted in environmental degradation, health issues, and poor working conditions. We employ a holistic approach that integrates elements from business studies, sustainability sciences and transition studies, to map the potential for sustainable value creation, i.e., economic, environmental and social impacts for the battery value chain in Finland. We match these impacts with EU and national policy in order to reveal obstacles and drivers for the creation of a sustainable Finnish lithium-ion value chain and discover areas that need additional policy support. Increased circularity will reduce the need for material extraction, but is unlikely to replace it completely. A significant challenge for the sustainable Finnish value chain is to balance the opposition of domestic mining and the need to import battery materials. Mining policy is largely separate from the battery sector and mining outside EU is difficult to regulate. Transparency is required throughout the value chain in order to achieve a social license to operate.