Strategies for Sustainable Management of Mineral Resources for Koreaʼs Major Battery Producers (LG Energy Solution, Samsung SDI, SK On)

Abstract

The proliferation of global regulations concerning sustainability and environmental protection poses a significant challenge to maintaining corporate sustainability. Consequently, companies must strategically respond to navigate these regulations in their management plans. The objective of this research was to analyze how Korean companies(LG Energy Solution, Samsung SDI, SK On) are responding to sustainable mining and procurement and how they adopt environmentally friendly practices in their mineral supply chain for battery manufacturing. We also proposed new actions to enhance their management strategies for sustainable mineral resource management. Our observations indicated that companies should implement a long-term performance measurement throughout their mineral supply chain. Additionally, there is an urgent need to develop a more proactive environmental management plan when evaluating suppliers from mineral extraction to utilization, adhering to global guidelines such as OECD regulation. In addition to the widely adopted monitoring of greenhouse gas emissions, priority assessments must be undertaken concerning soil and water pollution, waste management, and biodiversity loss within the supply chain linked with climate change under the nature-positive concept. We recommended the establishment of a recycling system for battery waste(i.e., minerals), which is essential for a resilient battery supply chain.