Volkswagen, Daimler, BASF and Fairphone plan sustainable lithium mining in Chile

With the advance of e-mobility and digitisation, the global demand for lithium as a key material in batteries is expected to grow dynamically in the next few years. The world’s largest lithium reserves and large parts of the total production are located in Salar de Atacama, Chile.

Now, some companies have initiated a ‘Responsible Lithium Partnership’ aiming to work towards responsible natural resource management, including lithium. This cross-industry partnership is funded at its inception by Volkswagen Group, BASF, Daimler and Fairphone. The partnership intends to foster a dialogue among local stakeholders, generating and synthesising scientific facts and seeking solutions in a participatory manner.

Why this initiative assumes importance is because the region’s ecosystem is fragile and there is lack of consensus regarding the impacts and risks of lithium mining and other economic activity in the region. Potential risks derived from water and brine table shifts could potentially harm the ecosystems and affect local livelihoods. Addressing such water-related risks effectively requires the collaboration of stakeholders.

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, commissioned by the companies, will coordinate the partnership seeking to find common ground by building a multi-stakeholder platform among all relevant actors in the Salar watershed – ranging from civil society groups including indigenous communities, government institutions, mining companies and beyond.

The platform aims to facilitate a common understanding of the status quo and jointly develop a shared vision for the future of the Salar de Atacama watershed. In addition, it intends the co-development of a joint action plan to improve long-term integrated natural resource management and undertake the first implementing steps.

Another aim is to synthesise and verify available technical data, improve on it if necessary, and increase accessibility. The Responsible Lithium Partnership will commence later this year, with a planned duration of 2.5 years. It does not intend to facilitate the sourcing of lithium nor the purchase or selling of any raw mineral.

The financing companies BASF, Daimler AG, Fairphone, and Volkswagen Group say they are aware of their responsibility along the entire supply chain, including their human rights due diligence for raw material sourcing and production. They have, therefore, initiated the ‘Responsible Lithium Partnership’ to promote sustainable development, contribute to the reduction of potential negative impacts and strengthen the protection of human rights.