Aazzum Yassir, director of technology and operations at British company Pulse Clean Energy, explores why ethical supply chains must underpin the clean energy revolution, and how proactive alignment with emerging regulations can safeguard both industry credibility and long-term value.
The global energy transition market is on track to triple in value from £2.5 trillion/$3.3 trillion in 2025. Within this transformation, the global battery market alone has reached £98.9 billion/$130 billion, larger than the combined oil imports of Germany, France and Italy. Britain itself is aiming to deploy 23-27GW of storage by 2030.
This unprecedented growth presents an equally unprecedented opportunity to build supply chains that match the ambition of the technology itself; chains that are at their core both transparent and resilient.
Supply chain complexity
The path to clean energy has never been without its complexities. As our industry scales at speed, we must ensure that building truly clean energy goes beyond the grid connection – examining every link in our supply chains.
The battery supply chain is characterised by significant opacity. Minerals extracted from mines go through multiple intermediaries before reaching the battery product, which makes them notoriously difficult to trace. This complex, multi-stage journey creates substantial challenges in tracking the origin of materials and ensuring ethical sourcing practices throughout the process.
Lithium extraction from regions like Xinjiang and Tibet presents significant concerns regarding both environmental impact and labour practices. Processing stages, where materials from different sources are combined, further complicate traceability, with many operations occurring beyond meaningful oversight.
The solar industry has already begun its journey toward supply chain transparency through initiatives such as the GB Solar Roadmap. Now battery storage is following. If we’re investing in clean energy, we need to invest in the entire supply chain, not just at the point where it reaches the grid.
From assumptions to evidence
Pulse Clean Energy has made supply chain due diligence a priority by aligning with EU battery regulations and working with independent third-party verification. The company has mapped its supply chains to identify ESG incidents and performance across multiple tiers, from raw material extraction through to final manufacturing. Each layer of transparency added strengthens the company’s position with investors and regulators demanding greater accountability, but it also demonstrates integrity in doing the right thing through diligent and responsible practices.
Forced labour and unethical sourcing represent material risks to project funding, regulatory compliance, and ultimately asset value. Investors are increasingly demanding third-party supply chain ESG reporting. Regulators are placing greater emphasis on transparency and due diligence.
These issues affect real people in mining communities and processing facilities around the world. If we’re building infrastructure that aims to improve quality of life, we also have a responsibility to ensure no part of its development causes harm.
Building transparent infrastructure
New regulatory frameworks are emerging that could enhance battery supply chain visibility. The European Union is pioneering requirements that will mandate comprehensive tracking systems for batteries. Starting in 2027, regulations will require manufacturers to provide detailed product information through accessible digital identities, creating complete traceability from raw material extraction through to end-of-use.
Qualitative empirical data already demonstrates that digital battery passports can break down information silos among supply chain actors, support recycling and reuse processes, and increase transparency about carbon footprint impacts across entire supply chains. Importantly, they create a level playing field with horizontal requirements for all actors, irrespective of their origins.
Britain should proactively align with these standards. They reflect the direction of the global market, and early adoption provides a competitive advantage while avoiding costly retrofits later.
The geopolitical dimension
We must also recognise that supply chain challenges don’t exist in isolation; they’re fixed within complicated economic structures, geopolitical tensions, and historical contexts.
The global distribution of essential battery minerals creates significant geopolitical tensions in the ethics of supply chains. Nations compete for access to these materials, which shapes diplomatic relationships and trade agreements.
Countries must navigate the challenge of securing resources for their own energy transitions and economic interests, whilst also honouring the sovereignty and autonomy of mineral-rich nations and protecting the welfare of their citizens. This dynamic between resource control and international power structures further complicates the ethical considerations involved.
Industry cannot do this alone
Following the path of battery production exposes a worldwide web of environmental and human impact, far removed from our everyday interactions with energy. These are systemic challenges that no single company, regardless of its resources or commitment, can address in isolation.
That’s why earlier this year, Pulse Clean Energy joined with Britain’s leading battery storage providers, coordinated by the Electricity Storage Network, to issue a joint statement condemning forced labour in the lithium-ion battery supply chain. This represents a collective commitment from industry leaders to uphold human rights and promote transparent practices.
But industry coordination must also coincide with government collaboration. Britain has the technical expertise, market position, and regulatory experience to lead on ethical sourcing standards. If strong frameworks are established now, through public-private collaboration, then the country will be in a position to build precedents for the gigawatt-scale markets of the 2030s.
While some aspects of the EU battery regulations are already in effect, the most stringent due-diligence obligations have been delayed to 2027 to give suppliers adequate time to prepare and implement. With the delayed rollout there is no excuse for buyers not implementing enhanced diligence into their procurement processes.
Investor requirements for ESG reporting are tightening. Public scrutiny of supply chains is increasing. The companies and countries that move proactively on transparency will have competitive and ethical advantages over those that wait.
Britain’s battery storage sector has demonstrated remarkable innovation and deployment speed. The industry has overcome technical challenges, navigated complex planning processes, and delivered significant storage capacity ahead of many international competitors. This same capability must continue to apply to supply chain integrity.
The infrastructure built today will support grid stability and ultimately provide cleaner, more affordable energy for consumers. The supply chains behind that infrastructure deserve equivalent attention to the megawatt-hours they will deliver. Britain has an opportunity to demonstrate that rapid deployment and ethical supply chains are not competing priorities but complementary elements of a mature industry.
