- Global automakers are accelerating efforts to decarbonize EV supply chains and improve responsible sourcing.
- Chinese manufacturers recorded the largest improvements in battery recycling and supply chain transparency.
The Tesla auto supply chain leaderboard released on March 2 by Lead the Charge evaluates how global automakers are building equitable, sustainable, and fossil-free electric vehicle supply chains. The fourth edition of the ranking, supported by climate, investor, and human rights organizations, compares 18 major automotive manufacturers on factors including decarbonization, responsible mineral sourcing, battery recycling, and supply chain transparency.
Global Automakers Compared on Sustainable EV Supply Chains
The analysis found that Tesla maintained the top overall position among global manufacturers. However, other automakers led in specific categories. Volvo ranked highest for supply chain decarbonization, while Ford achieved the strongest performance in responsible sourcing practices.
Because of the strong results from Tesla and Ford, companies headquartered in the United States collectively ranked as the strongest performers in the evaluation. The report measures progress toward eliminating fossil fuels in manufacturing inputs and reducing environmental and social risks linked to raw material extraction.
Decarbonizing Steel and Aluminum in EV Production
Several European manufacturers demonstrated significant progress in reducing emissions from key industrial materials. Volvo and Mercedes-Benz have both invested heavily in decarbonizing steel and aluminum used in electric vehicles.
These initiatives include disclosure of the quantities of low-carbon materials used in new EV platforms such as the Mercedes-Benz CLA and the Volvo ES90. Such transparency reflects a broader industry shift toward measuring and reducing embedded emissions in vehicle production.
Supply Chain Transparency and Raw Material Monitoring
Mercedes-Benz, Volkswagen, and Tesla have also begun publishing raw-material reports outlining their efforts to address environmental and human rights risks across mineral supply chains. These disclosures cover critical battery materials including lithium, cobalt, and nickel, which are essential for EV battery manufacturing.
Chinese Automakers Show Fastest Progress
Manufacturers from China recorded the largest improvements in the rankings. Geely, now the top-scoring East Asian automaker in the study, introduced advanced practices for battery decarbonization and recycling while strengthening oversight of human rights conditions in supplier networks.
BYD also improved its standing by introducing a new supplier code of conduct and establishing a grievance mechanism designed to address supply chain concerns raised by workers and communities.
Battery Recycling and Indigenous Rights Gain Attention
The report also highlighted broader industry progress in addressing environmental and social responsibilities. Twelve of the eighteen evaluated automakers have begun implementing policies that acknowledge and protect Indigenous Peoples’ rights in resource-extraction regions.
Meanwhile, more than half of the companies improved their scores related to battery recycling and repurposing. This progress reflects increased investment in recyclable battery design and partnerships aimed at reusing retired EV batteries for stationary energy storage systems.
Overall, the study demonstrates growing industry momentum toward building cleaner and more transparent supply chains as electric vehicle production expands worldwide.
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