Sustainability effects of material demand by next-generation lithium-ion battery technologies: A global value chain perspective

• Sustainability assessment of material demand for next-generation LNMO battery cells using a global value chain analysis. • LNMO cells assessed in this study exhibit up to nearly one-third lower GHG emissions in upstream material sourcing compared to conventional NMC-811 technologies. • Global shifts in material sourcing also reduce value added and employment, primarily due to contraction in Asian supply chains. • Mining is the most impacted stage of the global value chains due to change in battery chemistry, reflecting the geographical concentration of processing and component industries. • Mining generates a small share of value added and employment, indicating a mismatch between potential negative impacts of mining activities and economic gains throughout the entire battery value chain. Lithium-ion battery technologies depend on critical raw materials, and their rising demand poses significant environmental, social, and economic challenges globally. This study quantifies the material requirements and upstream impacts for next-generation LNMO battery cells relative to conventional technologies. Using an extended multi‐regional input-output framework extended with detailed trade data, we assess how material sourcing influences value creation, employment, and greenhouse gas emissions, including indirect effects across the broader economy. Our analysis reveals that material extraction and processing contribute 30 % of the total value added while generating 56 % of upstream employment. Furthermore, LNMO cells exhibit 20–25 % lower greenhouse gas emissions compared to NMC-811 cells. Shifting anode sourcing to Norway further reduces these emissions to levels comparable to LFP cells, while decreasing job creation in the mining industry. These findings underscore the need for targeted policy interventions to address potential uneven distribution of benefits and burdens along global battery supply chains.