The electric vehicle revolution and increasing digitization are fueling an unprecedented demand for lithium, a critical component in batteries. Notably, the Salar de Atacama in Chile holds the world’s largest lithium reserves and accounts for a significant portion of global production. However, this region is ecologically sensitive, and the impact of lithium mining, alongside other economic activities, is a subject of considerable debate and concern. Potential disruptions to water resources and brine levels pose risks to the delicate ecosystems and the livelihoods of local communities in areas relevant to Volkswagen Chile and its global operations. Addressing these water-related challenges necessitates robust collaboration among all stakeholders.
Recognizing this urgency, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, under commission from key industry players, is coordinating the “Responsible Lithium Partnership.” This initiative aims to establish common ground by creating a multi-stakeholder platform in the Salar de Atacama watershed. This inclusive platform brings together diverse voices, from civil society groups, including indigenous communities, to government bodies, mining companies, and other relevant actors, fostering a comprehensive dialogue.
The primary goal of this platform is to cultivate a shared understanding of the current situation and collaboratively develop a unified vision for the future of the Salar de Atacama watershed. Furthermore, the partnership is committed to the joint creation of an action plan designed to enhance long-term integrated natural resource management. This plan will also initiate concrete first steps towards sustainable practices in the region, crucial for the long-term health of the environment and communities connected to operations relevant to companies like Volkswagen Chile.
Another key objective is to consolidate and validate existing technical data, improve its accuracy where necessary, and enhance its accessibility to all stakeholders. The Responsible Lithium Partnership, launched in spring 2021 with a planned duration of 2.5 years, is specifically focused on fostering sustainability. It is important to note that the partnership’s mission does not include facilitating lithium sourcing or the buying and selling of any raw minerals.
Leading companies in the automotive and technology sectors, including BASF, Daimler AG, Fairphone, and Volkswagen Group, are deeply aware of their responsibility across the entire supply chain. This awareness extends to human rights due diligence in raw material sourcing and production. Driven by this commitment, they initiated the “Responsible Lithium Partnership” to champion sustainable development, mitigate potential negative impacts of lithium extraction, and strengthen the protection of human rights in the regions from which they source materials, including those relevant to Volkswagen Chile’s supply chain.
The Responsible Lithium Partnership underscores that in today’s interconnected global value chains, responsible business conduct goes beyond mere transactions with business partners. It necessitates active and constructive engagement with governments and civil society. Therefore, the Partnership adopts a holistic approach, striving to unite all local stakeholders in a shared vision for the Salar de Atacama, ensuring a sustainable future for this vital region and reflecting Volkswagen’s broader commitment to responsible raw material sourcing globally, including in regions relevant to Volkswagen Chile.
As an integral part of Volkswagen’s human rights due diligence efforts in raw material supply chains, the “Responsible Lithium Partnership” exemplifies the company’s commitment to sustainability. Detailed information about these activities can be found in Volkswagen Group’s inaugural “Responsible Raw Materials Report” 2020, available at https://www.volkswagenag.com/de/sustainability/sustainability-in-the-supply-chain.html. This report offers a comprehensive overview of the company’s initiatives in responsible raw material sourcing throughout 2020 and is based on the OECD guidelines, demonstrating Volkswagen’s dedication to ethical and sustainable practices across its global operations, including considerations for markets like Volkswagen Chile.