Large-scale electric vehicle battery manufacturers require pollution-free power grids to achieve decarbonisation, according to a new report.
In a recent report published by Greenpeace, it has been highlighted that the carbon footprint of lithium-ion batteries, particularly those used in electric vehicles (EVs), can be significantly reduced by manufacturing them in regions with cleaner electricity grids.
The report indicates that countries with the highest carbon intensity of electricity used for EV battery production are Poland, Malaysia, and China. This is primarily due to the heavy reliance on fossil fuels, particularly coal, in these countries' grids, which raises the emissions associated with battery manufacturing.
In contrast, lower-carbon countries have grids with a higher share of renewable energy sources, resulting in much lower carbon intensity for battery production electricity. For instance, many EV battery manufacturers in regions like South Korea and Japan are setting targets to use 100% renewable electricity in their operations to reduce emissions.
China, the world's largest battery producer, has a carbon intensity of approximately 580 grams of CO2 per kilowatt-hour (gCO2/kWh), contributing to high emissions in battery manufacturing. By comparison, the average carbon intensity in countries receiving China's clean-energy exports (including batteries) is around 395 gCO2/kWh, showing a shift to lower carbon electricity in export markets.
Countries with cleaner grids, such as those in Europe, can produce EV batteries with significantly lower carbon footprints than those relying on coal-heavy grids like China and Poland. Efforts in supply chain decarbonization and sourcing from renewable-powered factories are crucial to reducing emissions in the battery sector globally.
The report recommends that policymakers and industry prioritize siting gigafactories in regions with cleaner grids or invest in dedicated renewable energy sources for on-site power. Shifting production from China to Europe can result in emissions reductions of 32 to 60%.
Among the leading EV battery manufacturers, Contemporary Amperex Technology Company Limited (CATL), BYD, and LG Energy Solution (LGES) operate hundreds of gigawatt-hours of capacity in China and Poland, where the carbon intensity of the national grid exceeds 500 gCO2/kWh.
Greenpeace East Asia campaigner Erin Choi urged all battery makers to set decarbonisation targets for electricity use and raw material sourcing. The report also emphasizes the importance of global manufacturers sourcing their energy from cleaner electricity grids to lower the carbon footprint of their products.
Notably, China's increase in renewable energy generation has caused the country's emissions to fall for the first time ever in the first quarter of 2025. This underscores the potential for significant emissions reductions in the battery sector, provided manufacturers prioritize clean energy production.
| Country/Region | Relative Carbon Intensity of Electricity (gCO2/kWh) | Notes | |---------------------|----------------------------------------------------|-----------------------------------------------| | Poland | Very high | Highest emissions intensity for EV battery production[1] | | Malaysia | High | Second highest after Poland[1] | | China | ~580 gCO2/kWh | Largest battery producer, coal-dependent grid[1][2][3] | | Export markets of China | ~395 gCO2/kWh | Lower than China, cleaner grids on average[2] | | Low-carbon countries (e.g., parts of Europe, S. Korea, Japan) | Lower | Use more renewables, set renewable electricity targets[1] |
This contrast illustrates the urgent need for battery manufacturing to shift to cleaner grids and renewable electricity to achieve meaningful emissions reductions. France attains the greatest benefit due to its low-carbon grid, according to the report.
- The carbon footprint of lithium-ion batteries, especially those used in electric vehicles (EVs), can be significantly reduced by manufacturing them in regions with renewable energy sources.
- In contrast to countries like China, Poland, and Malaysia, which have high carbon intensity of electricity used for EV battery production due to the heavy reliance on fossil fuels, especially coal, lower-carbon countries have grids with a higher share of renewable energy sources.
- The report suggests that countries with cleaner grids, such as those in Europe, can produce EV batteries with significantly lower carbon footprints than those relying on coal-heavy grids like China and Poland.
- Efforts in supply chain decarbonization and sourcing from renewable-powered factories are crucial to reducing emissions in the battery sector globally.
- The report recommends that policymakers and industry prioritize siting gigafactories in regions with cleaner grids or invest in dedicated renewable energy sources for on-site power to reduce emissions.
- Notably, China's increase in renewable energy generation has caused the country's emissions to fall for the first time ever, underscoring the potential for significant emissions reductions in the battery sector if manufacturers prioritize clean energy production.
- To lower the carbon footprint of their products, global manufacturers should set decarbonisation targets for electricity use and raw material sourcing, as recommended by Greenpeace.
