Mobility
The mobility sector contributes significantly to global greenhouse gas emissions. According to a report from the European Environment Agency, the mobility sector was responsible for around a quarter of the EU's total CO2 emissions in 2019, with road traffic accounting for 71.7% (European Parliament, 2024).
A more sustainable and greener alternative to this is electric mobility, which is an essential area for expanding the climate-friendly mobility transition. Following the European Green Deal roadmap, the EU aims to reduce transport emissions by 90% by 2050, with the goal of achieving climate neutrality.
With electric cars being a promising solution, representing nearly 20% of all new registered passenger vehicles in 2021, these mobility alternatives are paving the way for lower-emission mobility solutions (European Environment Agency, 2024; European Parliament, 2024). According to the European Commission, the electrification of the mobility sector will play a key role in drastically reducing emissions by 2030 (Council of the EU and the European Council, 2025; European Commission, n.d.).
To meet the goals of the Paris Agreement, a transformation in the mobility sector is necessary. The switch to electric mobility is a promising step toward achieving European climate targets. However, this transition brings challenges, particularly regarding the origin and processing of critical raw materials that are essential for battery production and vehicle technology. The shift to electric mobility depends on ensuring that the corresponding supply chains are monitored and minerals are sourced responsibly. This includes protecting the environment, respecting human rights, and promoting fair working conditions.
The production of mobility battery cells faces various challenges, as transparent information on the origin of materials is often limited, production is resource- and energy-intensive, and the market for lithium batteries is highly competitive. Large battery factories benefit from economies of scale and can consequently offer batteries at lower prices. Additionally, many other substances needed for battery production are toxic (Betz et al., 2021).
With the surge in demand for lithium batteries, cobalt has gained attention in previous years. Cobalt is often sourced outside the EU, primarily in the Democratic Republic of Congo, as it produces more than 70% of the world's cobalt production. This mineral is mostly produced as a byproduct of copper and nickel mining. A majority of the Democratic Republic of Congo’s cobalt extraction happens in the Copperbelt, located in the country's southern region (World Economic Forum et al., 2020).
Cobalt is essential in most batteries for electric vehicles, helping to improve thermal stability and reduce the risk of overheating. Environmentally, mining cobalt often has adverse environmental impacts, including land disturbance, dust pollution, and habitat fragmentation. Although the research on alternative battery technologies is ongoing, cobalt will still be an important raw material in meeting the energy needs of the growing market for electric vehicles (Posner & Baumann-Pauly, 2023).
At the same time, recycling used batteries faces challenges such as fires caused by heat or mechanical damage to cells. Consequently, recycling facilities need to be equipped to detect heat as quickly as possible and take appropriate countermeasures. In addition, lithium-ion batteries contain hazardous substances, such as electrolytes, making the protection of workers and the environment crucial. Finally, battery recycling is often cost-intensive, as logistics are complex and associated with risks (Betz et al., 2021).
As supply chains in the mobility sector are often global, sustainability due diligence is crucial. It aims to foster sustainable and responsible behavior in company operations with regard to human rights and the environment beyond Europe. The OECD defines due diligence as: “the process enterprises should carry out to identify, prevent, mitigate and account for how they address […] actual and potential adverse impacts in their own operations, their supply chain and other business relationships […]” (OECD, 2020).
Recent events have shown how a single supplier providing a small component can have significant consequences for the Original Equipment Manufacturer. In early 2024, certain vehicles bound for the U.S. were held at ports after components from a supplier were traced to a region with human rights concerns. Although the issue involved just one part deep within a complex supply chain, it disrupted deliveries, created reputational risks, and highlighted the challenges of monitoring multi-tier supplier networks in real time (Reuters, 2024).
Such cases highlight why comprehensive due diligence practices are essential - not only for compliance but also for maintaining market access and stakeholder trust. However, many companies struggle to navigate the complexities of due diligence in mineral supply chains.
DiliCHANCE offers a virtual One-Stop Shop for successful Due Diligence in the mobility sector. The One-Stop Shop feature over digital tools, regulations and standards as well as access to deep-dive articles and Webinars.
References
Betz, J., Stefanie Degreif, Degreif, S., & Dolega, P. (2021). State of Play and Roadmap Concept: Mobility Sector. In Re-Sourcing Project. Retrieved July 31, 2025, from https://re-sourcing.eu/content/uploads/2022/11/sop_mobility_sector-1.pdf
Council of the EU and the European Council. (2025, March 17). Fit for 55. Retrieved July 31, 2025, from https://www.consilium.europa.eu/en/policies/fit-for-55/
European Commission. (n.d.). Renewable Energy Directive. Retrieved August 19, 2025, from https://energy.ec.europa.eu/topics/renewable-energy/renewable-energy-directive-targets-and-rules/renewable-energy-directive_en
European Environment Agency. (2024, October 31). New registrations of electric vehicles in Europe. Retrieved July 31, 2025, from https://www.eea.europa.eu/en/analysis/indicators/new-registrations-of-electric-vehicles
European Parliament. (2024, December 6). CO2 emissions from cars: facts and figures (infographics). Retrieved July 31, 2025, from https://www.europarl.europa.eu/topics/en/article/20190313STO31218/co2-emissions-from-cars-facts-and-figures-infographics
Organisation for Economic Co-operation and Development, OECD (2020): Guidelines for Multinational Enterprises. OECD Due Diligence Guidance for Responsible Business Conduct. Retrieved July 31, 2025, from https://mneguidelines.oecd.org/due-diligence-guidance-for-responsible-business-conduct.htm
Posner, M., & Baumann-Pauly, D. (2023, September 10). Teaching case: Digging into the ethics of cobalt mining. Financial Times. Retrieved July 31, 2025, from https://www.ft.com/content/81ab1d09-68b0-43c1-9155-5f1394ec73c5
Reuters. (2024, February 14). Some Volkswagen cars delayed in U.S. ports over Chinese part. Reuters. https://www.reuters.com/business/autos-transportation/some-volkswagen-cars-delayed-us-ports-over-chinese-part-2024-02-14/
World Economic Forum, Geneva Center for Business and Human Rights, & New York University Stern Center for Business and Human Rights. (2020). Making Mining Safe and Fair: Artisanal cobalt extraction in the Democratic Republic of the Congo [Report]. http://www3.weforum.org/docs/WEF_Making_Mining_Safe_2020.pdf