Sustainability effects of material demand by next-generation lithium-ion battery technologies: A global value chain perspective

Abstract

Lithium-ion battery technologies depend on critical raw materials, and their rising demand poses significant environmental, social, and economic challenges globally. This study quantifies the material requirements and upstream impacts for next-generation LNMO battery cells relative to conventional technologies. Using an extended multi‐regional input-output framework extended with detailed trade data, we assess how material sourcing influences value creation, employment, and greenhouse gas emissions, including indirect effects across the broader economy. Our analysis reveals that material extraction and processing contribute 30 % of the total value added while generating 56 % of upstream employment. Furthermore, LNMO cells exhibit 20–25 % lower greenhouse gas emissions compared to NMC-811 cells. Shifting anode sourcing to Norway further reduces these emissions to levels comparable to LFP cells, while decreasing job creation in the mining industry. These findings underscore the need for targeted policy interventions to address potential uneven distribution of benefits and burdens along global battery supply chains.