Battery Materials Sourcing We are working with others in the industry to drive greater transparency, opportunity and equity in our supply chain Our Participation in International Multi-stakeholder In addition to our in-house cell production and responsible sourcing efforts, Tesla is engaged in several new cross-industry Initiatives initiatives, including our memberships to the Global Battery Alliance and the Fair Cobalt Alliance, as well as collaborating with various battery supply chain participants to implement technology solutions using blockchain to improve our supply chain transparency and traceability programs for nickel and cobalt. Global Battery Alliance (GBA): In mid-2020, Tesla began participating in the GBA’s Human Rights and Child Labor and Greenhouse Gas (GHG) Footprint working groups. This GBA multi-stakeholder effort, including members from throughout the industry, is undertaking the creation of a “Battery Passport” to give consumers greater visibility into the environmental and societal impact of lithium-ion batteries. Tesla joined the GBA as a full member in 2021. Tesla has also helped GBA in its transition from being incubated by the World Economic Forum to a fully functioning and independent entity today and has joined the GBA’s Board of Directors. Fair Cobalt Alliance (FCA): Artisanal cobalt represents 10-20% of the DRC’s cobalt supply and provides a source of direct employment for more than 100,000 people in the DRC. In 2020, Tesla joined the FCA, whose mission is to positively transform and professionalize the artisanal mining sector (ASM) by adopting safer mining practices, to eliminate and prevent child labor by allowing children and youth access to education and vocational training and to increase household incomes and reduce poverty by supporting the transition of ASM communities to more sustainable livelihoods. The FCA is an action platform that engages with both the national and provincial governments of the DRC, as well as with civil society and technical partners to achieve its objectives. 52
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