SQM Joins World Economic Forum Initiative to Strengthen Sustainable Energies

In Switzerland, SQM and 41 other global organizations and companies pledged to adhere to the sustainability principles of the World Economic Forum’s Global Battery Alliance (GBA). These partners, which play a key role in electromobility, have committed to ten pillars for a sustainable lithium battery value chain.
Over the next decade, batteries will be an important factor in reducing the carbon footprint of the transportation and energy sectors, which are presently responsible for 40% of annual carbon emissions worldwide. This will be accomplished through the use of electric vehicles and renewable energies.
In order to help companies and governments, the Global Battery Alliance generated an agreement based on 10 guiding principles for the creation of a sustainable lithium ion battery chain by 2030. The 42 organizations signing this agreement include representatives from the mining, chemical, battery, automotive and energy industries, along with international organizations and global NGOs. Among them, SQM is the only company that produces lithium carbonate and lithium hydroxide, which are fundamental components of the batteries currently used by the electric vehicle industry around the world.
These principles are intended as the first step in a responsible, sustainable battery value chain as set out in the Global Battery Alliance’s “A Vision for a Sustainable Battery Value Chain in 2030”. Implementing commitments will be based on existing standards such as the Organisation for Economic Co-operation and Development (OECD)’s Due Diligence Guidance and economically viable considerations for a circular and low carbon economy.
According to Ricardo Ramos, CEO of SQM, “Over the past 25 years, we have been operating and optimizing the sustainable production process for lithium. Our company takes the responsibility to protect the environment very seriously and we guarantee the wellbeing of neighboring communities.”
As a key element to achieve the objectives of the Paris Agreement, “today we are taking a step beyond, making a transparent, public commitment to the principles of the World Economic Forum’s Global Battery Alliance to guarantee a sustainable supply of lithium,” explained Ramos, who then added: “As a leading producer of lithium, we believe that this is an important step towards building a sustainable battery supply chain.”
Ralf Pfitzner, Head of Sustainability for the Volkswagen Group, commented, “At our company, our requirements for sustainability and social responsibility go way beyond production and cover the entire value chain. We do not tolerate any violation of environmental and social standards and this applies to the entire supply chain. For this reason we support the GBA and are committed to the 10 principles that were agreed today as a basic component to safeguard human rights and economic development in conformity with the UN Sustainable Development Goals.”
It is important to align the players in the battery market since it sets the foundation for a transparent system of accountability. As such, the agreement will guide development of a global system for disclosing information on digital batteries known as “battery passports” that is designed to enable a transparent value chain, for example, with respect to human rights and environmental footprints.
Global Subscribers
The organizations backing the creation of a battery value chain that complies with these principles are: AB Volvo, the African Development Bank, Amara Raja Batteries, Analog Devices, Audi, BASF, Bayerische Motoren Werke (BMW), Cadenza Innovation, China EV100, Clarios, ClimateWorks Foundation, Enel, Envision Group, Eurasian Resources Group (ERG), Everledger, Fairphone, Fundación Chile, Good Shepherd International Foundation, Greentech Capital Advisors, Groupe Renault, Honda, IMPACT, International Institute for Environment and Development (IIED), International Justice Mission (IJM) ), Johnson Matthey, International Lead Association (ILA), Leaseplan, Office of the President of the Democratic Republic of the Congo (DRC), OPTEL Group, Pact, Pure Earth, Responsible Battery Coalition, SGS, SK Innovation, Sociedad Química y Minera de Chile SA (SQM), The Faraday Institution, The World Bank Group, Trafigura, Transport & Environment (T&E), Umicore, the United Nations Children’s Fund (UNICEF), Volkswagen Group and the World Business Council for Sustainable Development (WBCSD).

We joined the Global Battery Alliance! As one of the global leaders in the production of lithium, a key input for the development of electromobility, SQM joined another 41 global organizations in pledging to adhere to the sustainability principles of the World Economic Forum’s Global Battery Alliance (GBA). These principles are intended as the first step in the creation of a sustainable, responsible lithium-ion battery value chain by 2030.

SQM: The Only Chilean Company to Sign Global Agreement for Sustainable Development of Electromobility. In Switzerland, the lithium producer joined another 41 companies of the likes of BMW, Audi and the Volkswagen Group in committing to ten pillars for a sustainable lithium battery value chain. “Today we are taking a step beyond, making a transparent, public commitment to the principles of the World Economic Forum’s Global Battery Alliance to guarantee a sustainable supply of lithium,” highlighted Ricardo Ramos, CEO of SQM.