In recent developments, Tesla's ethical standards regarding the mining of cobalt in the Democratic Republic of the Congo (DRC) have come under scrutiny. Activists are expressing concerns that the automotive giant is not doing enough to ensure its cobalt supply is mined sustainably, without the use of child or forced labor.

Tesla claims to have implemented checks on its suppliers, but according to reports by Forbes, these checks seem to be insufficient. Third-party monitors conduct scheduled visits to the mines, allowing them time to clear out potential child laborers. Previously, Elon Musk had promised to set up a webcam to monitor the mines in real-time, but this plan has been scaled back to a single blurry satellite image provided monthly.

The issue is amplified by the fact that Tesla's cobalt supply originates from various mines in the region, including Kamoto Copper Co., which primarily supplies cobalt to Tesla. While Kamoto Copper operates a mechanized mine, it also purchases cobalt from nearby artisanal mines, which are known to employ child labor, and in some cases, forced labor.

The cobalt mining industry in the DRC is a significant source of income for its citizens, with about 70% of the world's cobalt coming from the African nation. However, humanitarian groups are alarmed by the fact that an estimated 40,000 individuals under the age of 18 work in small-scale mining operations, often due to limited access to childcare or the need for additional income.

Tesla has stated its commitment to eliminating cobalt from its supply chain entirely. Currently, the company's battery chemistry only contains 3% cobalt by weight. Tesla has introduced a Lithium Iron Phosphate (LFP) battery as an alternative that does not require cobalt, but the extent of its implementation across Tesla's vehicle lineup remains unclear.

The cost of cobalt has recently dropped by nearly half, posing a multitude of challenges. This price decline not only affects workers in the DRC as demand increases and wages fall but also raises the overall demand for cobalt due to its affordability compared to LFP batteries. Benchmark Mineral Intelligence, a firm tracking battery metals demand, suggests that Tesla is likely still using around 3% cobalt in its batteries.

Caspar Rawles, Chief Data Officer at Benchmark, explains that reducing cobalt content in batteries has become less prioritized by manufacturers due to the oversupply in the cobalt market. Despite a modest reduction in cobalt consumption per unit, the overall demand for cobalt rises due to increased vehicle sales, outweighing any reduction achieved at the individual battery cell level.

While Tesla is not the sole electric vehicle (EV) manufacturer utilizing cobalt from the DRC, its prominent position in the EV industry makes it a target for human rights activist groups. The widespread use of lithium-ion batteries, containing cobalt, in various everyday devices further highlights the need for increased attention on responsible sourcing practices.

As the discussion surrounding Tesla's cobalt supply chain intensifies, stakeholders are calling for a collective industry effort to address this persistent issue, ensuring that the foundation of our technologically-driven lives is not built upon the exploitation of children trapped in laborious conditions.