Inside Northvolt's Sustainable Cathode Material Procurement

Sourcing sustainable cathode materials is a critical challenge for the battery industry, with significant environmental, economic and ethical implications.

Demand is rising rapidly, with an estimated need for an additional five million tonnes of cathode active materials (CAM) by 2032. This places immense pressure on supply chains, making responsible sourcing and procurement more important than ever.

Northvolt is at the forefront of this transformation, working to establish a battery industry that prioritises sustainability. The company carefully selects suppliers that align with its goals while ensuring a stable material supply.

Even with strategic shifts, Northvolt remains focused on building a sustainable battery value chain. This approach informs its supplier selection, procurement strategy, and broader efforts to create a responsible supply network.

Maria Åstrand, VP of Cathode Active Material, highlights the complexities of this work: “Together we develop the manufacturing process of the cathode material in our cells and industrialise the production in Skellefteå. It's a special environment with unique challenges.

"Every day, we're faced with taking many decisions. The process is complex and depends on many factors so it's about navigating a lot of uncertainty.”

Sourcing cathode active material at Northvolt

Northvolt initially sourced CAM from external suppliers while working toward in-house production.

The company built its own cathode production facility, Upstream 1, at Northvolt Ett, producing battery-grade material even before full commissioning.

By vertically integrating cathode and cell production, Northvolt gained direct access to raw materials from mines and refineries. This approach improved supply chain traceability and strengthened oversight of environmental and human rights standards.

However, in October 2024, Northvolt paused operations at Upstream 1 as part of a strategic review, shifting its focus to core cell manufacturing. While it seeks partnerships to restart upstream activities, it currently relies on externally sourced CAM.

The transition introduces new sustainability challenges, particularly in tracking material origins. With materials blended at different supply chain stages, ensuring traceability and verifying ethical and environmental standards becomes more difficult.

Another major concern is the carbon footprint of externally sourced CAM. Most CAM producers operate in Asia, where carbon-intensive energy grids increase emissions.

Northvolt estimates that using external CAM raises carbon emissions by approximately 10kg CO₂e/kWh compared to in-house production. The company is actively working to bridge this gap through stricter sustainability measures and supplier requirements.

Despite these challenges, Northvolt holds external suppliers to the same environmental and social standards as its internal operations.

It requires suppliers to meet fossil-free energy targets, use recycled materials and implement emissions reduction strategies. The company also monitors material sources to ensure compliance with its sustainability framework.

How Northvolt selects and monitors suppliers

Northvolt follows a risk-based sourcing approach aligned with the OECD Due Diligence Guidelines and the UN Guiding Principles on Business and Human Rights. All suppliers, including those providing raw materials to CAM producers, must adhere to Northvolt’s Supplier Code of Conduct.

In high-risk regions, Northvolt conducts third-party audits to assess supplier compliance. If a supplier does not meet its standards, the company implements corrective action plans, followed by reassessments to ensure improvements.

Contracts specify that only Northvolt-approved raw materials can be used, ensuring traceability through a mass balance chain of custody system.

The company also gathers and verifies data from across the supply chain to track adherence to sustainability commitments. External assessments confirm that Northvolt’s responsible sourcing practices align with EU Battery Regulation standards and customer expectations.

By 2024, Northvolt had approved enough raw material sources to meet its demand for externally produced CAM.

However, as production scales up, it is reviewing additional sources, including potential suppliers in Indonesia. Northvolt applies the same rigorous sourcing standards in new regions as it does in the Democratic Republic of Congo (DRC), aiming to uphold sustainability and ethical procurement practices.

Navigating risk in the Democratic Republic of Congo

While most of the cobalt in Northvolt’s externally sourced CAM comes from outside the DRC, a small portion originates from company-approved mines and smelters in the country’s southern region. These sites are not affected by conflicts in North Kivu province.

Northvolt engages with mining companies, NGOs and community organisations to understand supply chain conditions in the DRC.

To support responsible cobalt sourcing, it has joined initiatives such as the Fair Cobalt Alliance (FCA) and the Cobalt Institute. The FCA aims to improve conditions in artisanal and small-scale mining, while the Cobalt Institute promotes responsible cobalt production and use.

Northvolt has conducted extensive due diligence in the DRC, including site visits and supplier evaluations, to ensure its operations meet sustainability standards. The company has qualified specific mines for inclusion in its supply chain and continues to monitor these sources while assessing new ones.

Although Northvolt does not purchase cobalt from artisanal miners, it recognises the need for engagement in this area. As a major user of cobalt, the company believes responsible involvement can help drive improvements in mining conditions and ethical standards.

Despite the complexities of external sourcing, Northvolt remains committed to sustainability and responsible procurement. The company enforces strict supplier oversight, collaborates with partners to enhance supply chain standards and continues to plan for a return to in-house cathode production.

Its long-term vision is to create a transparent, sustainable battery industry while reducing environmental impact and ensuring ethical sourcing practices.

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