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CASE TITLE:
Tesla's Battery Supply Chain: A Growing Concern
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Case Description:
In its 2020 impact report, Tesla said, “None of our scrapped lithium-ion batteries (LIBs) go to landfills and 100% are recycled.” Unfortunately, global recycling capacity for LIBs is in its infancy. Since large-scale production of Tesla vehicles only started in 2013, most of these vehicles are still on the road. But many expect that within the next few years demand for LIB disposal will rise sharply, and by 2030, 1.2 million tons of batteries will need disposal. With environmental, social and governance reporting gaining momentum, how can Tesla remain a leader in sustainable enterprise, especially since its battery packs contained both toxic and rare earth metals? This case provides a history of electric vehicles (EVs), discussing the components of EV batteries, the EV battery supply chain and the process for EV battery recycling.