Conflict Minerals Simulation

6 roles
Intern at eDrive Battery Inc
Intern Supervisor (Head of Production at eDrive Battery Inc)
Company Customer (CEO of Ecar International, electric car manufacturer)
Supplier of raw materials
NGO representative
Marketing Manager at eDrive Battery Inc

Student A : Intern
You joined the company 3 months ago on a work-study programme. You have been working in the
production department of a company that manufactures batteries for electric cars. You find the work
fascinating, and you know that it is an area with huge potential. The market for electric cars is
expanding exponentially, and you are pretty much guaranteed to have a great career in this sector
after your internship.
Your mission is to work on the optimisation of the cobalt oxide layers in lithium ion battery
cathodes. The company has an exclusive supplier contract with two different car manufactures, a
deal which is worth millions and has allowed the company to expand substantially in the last two
years.
The production process requires large amounts of cobalt. As the price of this mineral has been
rising steadily, you have been asked to look into different options for the supply of the mineral.
Before taking on this task, you had very little knowledge of cobalt, and even less knowledge of
where it is sourced. You have discovered that the biggest sources of cobalt are in the Democratic
Republic of Congo. After researching the supply chain, you are very worried that your company has
not carried out proper due diligence in relation to where the mineral is sourced. You are horrified to
discover some of the issues behind where cobalt is mined and the conditions in which it is
exploited. You have mentioned this to your supervisor, who has tasked you with bringing together
different stakeholders in your company to discuss the issue. This is a very prestigious task, but you
need to tread carefully - the issue is complex, and you are keen to ensure that you can continue
working in this sector after you graduate.
Research information on :
- Cobalt : its uses and sources
- European legislation on « conflict minerals »
https://en.wikipedia.org/wiki/Cobalt
https://earth.org/cobalt-mining/
https://www.europarl.europa.eu/news/en/headlines/economy/20220228STO24218/new-eu-rules-
for-more-sustainable-and-ethical-batteries
Student B : Supervisor – Production Department Manager
You run the Production Department in your company, overseeing the production of Lithium Ion
Batteries for electric cars. Your company is expanding rapidly, and the demand for batteries is
increasing exponentially. You have risen to your current position rapidly, and are under a lot of
pressure to ensure that the company’s products are of the highest quality. However, your customers
(electric car manufacturers) are also pushing for the price of your batteries to be reduced in order to
bring the price of electric cars down. Supplying batteries for electric cars has allowed your company
to improve its environmental credentials as a contributor to the reduction in carbon emissions, and
your CEO is keen to market your brand as a green, ethical company. You have been feeling caught
between ensuring a quality product while keeping down costs. You have been using the same
supplier for many years, and therefore you have not taken much time to carry out the due diligence
necessary to check the supply chain and the origin of the cobalt you are using in production.
Your intern is a good worker, with lots of great ideas. As he/she is very autonomous, you are happy
not to have had to check his/her work too frequently. Now he/she has suddenly come up with these
concerns about the origin of the cobalt you are using. If your boss realises that you have not carried
out proper due diligence, you could lose your job. However, if you change your supplier or insist
that the cobalt be sourced responsibly, the price of your product will increase – it’s your
responibility to ensure the company’s profits are not affected.
In order to try to keep everybody happy, you have asked your intern to organise a meeting between
the different stakeholders who could be impacted if it becomes known that you have been using
cobalt which is not responsibly sourced. You see this meeting as more of a « greenwashing
exercise » to show the CEO that you are taking the issue seriously, but you don’t want to genuinely
change anything that will jeopardise your position. As it is only the intern organising the meeting,
you feel that the findings won’t receive much attention. However, you need to be careful – the
intern is related to your CEO….
Research information on
- Due diligence on cobalt sourcing
- EU regulations on conflict minerals
https://go-aliant.com/en/cobalt-conflict-minerals-and-lithium-batteries/
https://policy.trade.ec.europa.eu/development-and-sustainability/conflict-minerals-regulation/
regulation-explained_en
https://www.responsiblemineralsinitiative.org/minerals-due-diligence/cobalt/
Student C : Customer (electric car manufacturer Ecar International)
You make electric cars, in particular small models for city driving, as well as electic bikes and
scooters. The market is expanding rapidly, and your company is one of the leaders in the sector. It is
becoming a challenge to source enough batteries to keep up with demand, so you are happy to be
working with this company which supplies good quality batteries at a competitive price. The
government has been encouraging car manufacturers to bring their prices down in order to make
electric cars more accessible to a wider public. You have been carefully bulding your company’s
image as a responsible and ethical brand, actively contributing the reduction in carbon emissions.
You have been buying the batteries you use in good faith, without giving much thought to where the
raw materials used in their production come from.
You do not want to put all the hard work you have done on the company’s image at risk. You would
like to continue working with your battery supplier in order to ensure a steady supply, but you need
to be absolutely certain that they have been transparent about where the raw materials they use
come from.
Find information about how other companies have approached the issue of supply chains and
avoiding the use of conflict minerals. Can you apply their strategy and still protect your brand,
while ensuring the cost of your product does not increase ?
https://europeanpartnership-responsibleminerals.eu/blog/view/760e1cfb-a22a-4fff-ad24-
249696e5ae32/case-study-fairphone
https://www.caterpillar.com/en/company/sustainability/conflict-minerals.html -
https://www.business-humanrights.org/en/latest-news/electric-vehicle-users-should-demand-ethical-
sourcing-of-battery-materials-says-industry-analyst/
Student D : The Supplier
You have been supplying the company with the raw materials they need in production for many
years. You have a good relationship with them, but you have been coming under pressure to keep
the price of what you supply as low as possible. The international context is complex, prices are
rising everywhere, and the demand for cobalt in particular is increasing rapidly as the production of
electric vehicles is expanding. You have had to resort to different supply circuits in order to meet
the needs of your customers. Instead of going directly to the source of the minerals, you have had to
use an intermediary who can supply you cheaply. You have not been passing on the savings you
have made recently to the battery manufacturer, in order to increase your own profits. Now you are
being asked questions about where the minerals come from and who is supplying them. You need to
be able to defend your supply chain, even though you know that the intermediary you use has a
reputation for sourcing some minerals from regions of the Democratic Republic of Congo which are
controlled by militia. Your intermediary could easily bypass you and sell directly to the battery
manufacturer, which would mean you would lose that business. You are also nervous that the
source of cobalt could be revealed to the press, which would be terrible for all the companies
involved. You need to have enough information about the supply chain of cobalt to ensure that you
can talk your way out of this delicate situation…
https://mneguidelines.oecd.org/interconnected-supply-chains-a-comprehensive-look-at-due-
diligence-challenges-and-opportunities-sourcing-cobalt-and-copper-from-the-drc.htm
https://www.qualityze.com/conflict-minerals-compliance-a-complete-guide/
https://material-insights.org/material/
Student E : NGO Representative
You have been invited to take part in a meeting about the sourcing of minerals such as cobalt by an
enthusiastic young intern who is keen to ensure that the company he/she works for is responsible
and transparent in its supply chain. The intern wants you to explain to the company, its main
customer and its main supplier of cobalt some of the issues around the conditions in which cobalt is
mined, and the impact of the increasing demand for minerals of this type on local populations, mine
workers, child labour and the environment. You have spent time in the Democratic Republic of
Congo researching the subject, and not only do you have thorough knowledge of the issue, you
were also deeply affected by what you witnessed there.
Having done a little research on the supply chain of the battery manufacturer, you realise that they
have been using minerals from the DRC, possibly without realising it. You know that some
suppliers combine minerals with ones which come from other countries, making it difficult to detect
the real origin of the cobalt. However, you are familiar with the due diligence system put in place
by the EU and the regulations that should be applied.
You feel that the issue is not being taken seriously, and that the battery manufacturing company is
more concerned with production costs and profit than issues of human rights or the environment.
It’s your mission to ensure that they are aware of exactly how damaging the exploitation of cobalt
can be, and that they realise that they need to be exemplary in their supply chain if they want to
avoid a major scandal…

https://e360.yale.edu/features/siddharth-kara-cobalt-mining-labor-congo
https://www.amnesty.org/en/wp-content/uploads/2021/05/AFR6231832016ENGLISH.pdf
https://coltura.org/evbatteries/
Student F : Marketing Manager eDrive Battery Inc
You heard about this meeting by chance, and although you are pleased that the intern is taking
initiative, you need to be absolutely certain that anything that is discussed at the meeting contributes
to a positive image of the company. You have been working on the company’s CSR policy for the
last 6 months, and promoting electric cars as a solution to reduce carbon missions is central to your
marketing message. You are aware that the minerals used in production could be problematic from
an ethical point of view, but you aim to deflect attention from that to focus on the positive impact of
electric transport. You don’t know very much about the supply chain or exactly where the minerals
come from – it’s not your department. However, you want to make sure that the image of the
company that you have crafted is the one that the public is aware of.
You need to put forward the company’s contribution to the reduction of carbon emissions as a
battery manufacturer, and deflect attention from any potential problems with the supply chain.
Compare your approach with that of other EV manufacturers. Can you integrate a positive message
about the Due Diligence your company has done to ensure the minerals you use have come from
ethical sources ? How can you adjust the company’s image to include this message ?

https://www.iea.org/reports/global-ev-outlook-2023/executive-summary
https://www.driftrock.com/blog/electric-car-ads
https://www.kia.com/uk/about/news/sourcing-conflict-free-materials/