The lithium-ion batteries are at the heart of the transition from fossil-fuelled vehicles towards cleaner alternate powertrain options, but fundamental supply chain changes are needed to eliminate widespread forced labour and child labour abuses.

A recent research by AI supply chain risk platform Infyos has identified that companies accounting for 75 percent of the global battery market have connections to one or more companies in the supply chain facing allegations of severe human rights abuses. Most major battery manufacturers and end batteries applications are exposed including many of the world’s largest automotive, energy storage and electronics brands.

This new industry data is compiled from evidence on Infyos’ AI supply chain risk platform using thousands of government datasets, NGO reports, news articles and social media sources. 

Infyos’ AI technology is developed specifically for the battery industry to automate the gathering, cleansing and classification of unstructured data to identify and assign confidence ratings to allegations of human rights abuses with accuracy and speed that previously was not possible.

The AI-driven platform claims it is working with some of the world’s largest renewable energy and automotive companies to combine open-source data with additional proprietary data sources to identify which companies a customer may be connected to across the supply chain and where there is exposure to or allegations of human rights abuses.

Tony To, Co-founder & CTO, Infyos said: “Our platform is designed to provide users with insights into the complexities of the battery supply chain so they can take proactive measures to identify and mitigate risks. By leveraging AI in our technology we’ve created a system that delivers accurate data despite the complexity of the battery industry and most importantly provides users with simple actionable mitigations to collaborate with their suppliers to address risks and improve the sustainability of the industry.”
The report finds that widespread human rights abuses identified range from people being forced to work in lithium refining facilities under the threat of no or minimal pay to five-year-old children mining cobalt materials out of the ground in hazardous conditions. Severe human rights incidents are occurring globally, especially in resource-rich countries with fragile and corrupt governments like the Democratic Republic of Congo and Madagascar.

However, most of the allegations of severe human rights abuses involve companies who are mining and refining raw materials in China that end up in batteries around the world, particularly in Xinjiang Uyghur Autonomous Region (XUAR) in northwest China where the battery, automotive and solar industry has already been hit with public allegations of widespread forced labour from journalists, government agencies and non-profit organisations.

Complex supply chain

Electric vehicle and battery manufacturers have a complex supply chain, sometimes with over 10,000 suppliers across their network, from mines to chemical refineries and automotive manufacturers. Human rights abuses frequently occur upstream in the supply chain, notably at the raw material mining and refining stages, making it difficult for companies purchasing batteries to identify their supply chain risks.

The battery industry’s connections to these incidents stem from manufacturers sourcing components or materials from unethical companies in their supply chain network or entering business relationships, including joint ventures or equity investments hidden in complex and changing ownership structures, which conceals the reality of the unethical connections.

Sarah Montgomery, CEO & Co-Founder, Infyos added, “The relative opaqueness of battery supply chains and the complexity of supply chain legal requirements means current approaches like ESG audits are out of date and don’t comply with new regulations. Most battery manufacturers and their customers, including automotive companies and grid-scale battery energy storage developers, still don’t have complete supply chain oversight.”
It is important to understand that sourcing is coming under growing scrutiny, particularly in Europe and the US, where failure to address the issues means companies could be in breach of current and future regulations. 

This is damaging the battery industry’s clean credentials and hampering investment into the global battery market forecast to be worth nearly $500 billion (INR 41,655 billion) in 2030. With more legislation such as the EU Battery Regulation and the US’s Uyghur Forced Labour Prevention Act (UFLPA) being phased in, action must be taken now so companies can still sell their products.

Jeff Williamson, Head of Sustainability, Infyos said: “Companies manufacturing or purchasing batteries are at risk of having their products blocked at the market, further delaying and increasing the costs of renewable energy projects or tarnishing their reputation because of human rights risks.”

The UFLPA prohibits the import of goods made with forced labour in the Xinjiang region of China. The penalties for non-compliance can be extreme: earlier this year inspectors blocked vehicles they found to violate the regulations. The US Senate Finance Committee Chair has accused automotive manufacturers of ‘sticking their heads in the sand’ over forced labour in their supply chains and a subsequent report recommended that the Department of Homeland Security and Customs and Border Protection take further measures to strength enforcement of the forced labour ban in automotive supply chains, including placing CATL – the world’s largest battery cell manufacturer – on a list of companies banned due to their connection to forced labour. Europe is following suit with its forced labour ban while a proposal has been submitted to increase the fines for non-compliance with the UK’s Modern Slavery Act to 4 percent of global annual turnover.

Sarah Montgomery, CEO & Co-Founder, Infyos said: “We have already seen how forced labour incidents in supply chains for the solar industry have blocked the largest solar suppliers from the US market and slowed down the transition to clean energy: as the battery industry faces the paradigm shift to electrification, the lessons learnt in solar must be applied to the battery industry if the energy transition is to stay on track.”

Battery-specific regulations within Europe are becoming more stringent too. New EU Battery Regulations coming into effect between 2024 and 2036 require much more rigorous supply chain visibility and risk management starting in 2025 with non-compliance leading to products being blocked from the European market. These pressing supply chain requirements, which many in the industry are struggling to comply with, are foundational to the much-talked-about battery passports in 2027. The UFLPA and EU Battery Regulation are widely seen as the battery industry gold standard due to their strict requirements on due diligence and supply chain visibility, and many companies operating outside of the regions are voluntarily aiming to meet their requirements.

By addressing issues within their supply chain, companies not only continue to have a licence to operate and avoid costly fines but can also actively grow their business: Research from PwC found that 89 percent of institutional investors are considering or have already rejected investments in firms with ESG shortcomings. Additional human rights pressure is coming from investors, who are now mandating deeper supply chain risk management and visibility as a condition of lending or investment to minimise their own financial risk. While financial and regulatory pressures are increasing awareness of human rights abuses in battery supply chains, more industry action to address human rights abuses is needed to drive battery applications forward and ensure 2050 net-zero emissions targets don’t face total failure.

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Epsilon CAM, the cathode materials business of Epsilon Group, has entered customer validation testing for its Gen 3.0 Lithium Iron Phosphate (LFP) Cathode Active Material with battery cell manufacturers across the Asia-Pacific region, Europe and the United States.

The material, launched in April 2026, records a discharge capacity of 159 mAh/g and an electrode density of 2.51 g/cc or higher. These metrics match performance benchmarks established by Chinese producers, who have historically supplied the majority of LFP cathode materials to international markets.

Epsilon CAM plans to construct a manufacturing facility with an annual capacity of 20,000 tonnes per annum (TPA) by 2028, with targets to expand output to 100,000 TPA. The expansion aims to position the company as an alternative supplier of cathode active materials outside of China.

Vikram Handa, Managing Director, Epsilon Group, said, "The global battery industry is entering an era where technology leadership must be complemented by resilient and diversified supply chains. The advancement of our Gen III LFP cathode material into customer validation with large global cell makers shows our commitment to providing cell manufacturers with high-performance, globally competitive and supply chain-resilient cathode solutions."

Product engineering for the material is conducted at Epsilon CAM's Cathode Technology Centre in Moosburg, Germany. The research hub operates alongside a 250 TPA pilot manufacturing facility and holds 149 patents in cathode chemistry, materials science and process engineering.

The non-Chinese origin of the technology and its manufacturing processes complies with United States Prohibited Foreign Entity (PFE) regulations regarding battery material provenance. This compliance provides automotive original equipment manufacturers and cell producers with a supply chain option that aligns with North American and European regulatory frameworks for electric mobility and energy storage products.

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E3 Electric.AI, a Bengaluru-based electric mobility startup, has officially entered the passenger scooter segment with the launch of the E3 TRION, a vehicle positioned as India’s first artificially intelligent electric scooter. The company unveiled the model as a new category contender, combining human-centric design with predictive intelligence and a modular architecture that enables continuous learning and adaptation over time.

The E3 TRION is built on the proprietary TRIAXISFRAME modular platform, which supports both portable and fixed battery configurations. This scalable architecture allows for multiple variants, namely the C1 with a removable battery, the C1x offering an IDC range of 165 kilometres from a three-kilowatt-hour pack and the C2 variant that achieves a top speed of 82 kmph and accelerates from 0 to 40 kmph in six seconds in Sport mode.

Central to the scooter’s intelligence is the E3 COMMANDCENTER, which includes the proprietary intelligent IoT core and cloud-based monitoring systems. This setup continuously tracks each connected vehicle, predicts potential failures before they occur, enables proactive servicing and delivers over-the-air software updates. With each ride, the system accumulates data to refine its responses, creating an evolving ownership ecosystem aimed at increasing rider confidence.

The rider interface is managed through the TRIPSENSE Intelligent Cockpit, featuring a five-inch INSIGHT DISPLAY that pairs with a smartphone for a unified experience. The system provides navigation, charging insights and AI-powered alerts, while the broader suite of over 100 intelligent functions includes a 10-second diagnostic health scan, predictive reports, a smart trip planner with charger locator, remote battery monitoring, dashcam capability, SOS assistance and geo-fencing.

Practical usability for Indian families remains a key focus, with the scooter equipped with 14-inch TRAKWHEEL wheels for improved grip and stability across varied terrains. The vehicle also features IP67 weather protection, safeguards against voltage fluctuations and the LIGHTIQ intelligent lighting system with dual projector LED headlamps and signature rear lamps. Ergonomics are addressed through ERGORIDE principles, optimising six contact points for natural visibility and comfort, while combined storage across the boot, floorboard and glove box totals up to 52 litres.

Powertrain options include a 2.3-kilowatt-hour portable VOLTPORT battery and a three-kilowatt-hour fixed battery, both using durable LFP chemistry and engineered for up to eight years of real-world use. The high-efficiency PMSM hub motor incorporates ROTORING and a detachable rim for faster servicing. Available in six colour options with various accessories, the E3 TRION is priced at an introductory ex-showroom Bengaluru rate of INR 109,999 for the C1x and INR 119,999 for the C2 variant.

Sanjeev P, Founder & CEO, E3 Electric.AI, said,"E3 Trion isn't an electric scooter with an app bolted on. It is built with AI at its core, human centric engineering and a modular future-ready platform. Every problem that's held Indian families back from going electric – range anxiety, safety, service, cost – is something we designed around from day one. We didn't want to build just another electric scooter; we set out to build an electric scooter where predictive intelligence is core to the architecture. The E3 Trion has been crafted keeping Indian families in mind, where daily commuting demands reliability, practicality and peace of mind. By making the technology adaptive and the experience intuitive, we want everyday travel to feel smoother and more dependable. This is a meaningful step towards mobility that's not only efficient but genuinely aligned with what modern Indian riders expect."

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VinFast Auto India has inaugurated its 60th retail outlet, a new 3S dealership in Patna, Bihar, marking the company’s first foray into the eastern state. The facility, established by Patliputra Motors Private Limited and led by Harsh Raj, is strategically positioned on NH-30, Bypass Road, to serve as a key access point for regional customers. This milestone comes just one year after the automaker opened its first Indian showroom, underscoring the rapid scaling of its commercial footprint.

Spanning 11,500 square feet, the Patna facility adheres to VinFast’s global retail standards and integrates vehicle sales, after-sales services and customer support within a single premises. A 3,000-square-foot modern showroom allows visitors to interact with the electric vehicle lineup, while dedicated professional teams manage the entire ownership journey. The one-stop destination is designed to handle everything from initial discovery and purchase to ongoing maintenance and care.

The expansion into Bihar reflects VinFast’s deliberate strategy to penetrate tier 2 and tier 3 markets alongside major metropolitan hubs, with Patna serving as a critical gateway to eastern India. The company remains on track to reach 75 dealerships across more than 60 cities by the end of 2026. Beyond retail growth, VinFast is concurrently bolstering its domestic ecosystem through local manufacturing, charging infrastructure and strategic partnerships to support India’s sustainable mobility transition.

The company’s premium electric SUVs, the VF 6 and VF 7, have achieved 5-star Bharat NCAP safety ratings and come with comprehensive benefits, including roadside assistance, three years of complimentary maintenance, and warranties up to 10 years or 200,000 kilometres. The seven-seater VF MPV 7 offers a 517-kilometre ARAI-certified range and fast-charging capability. Customer incentives include the Value Assured Programme for buyback guarantees, complimentary charging on the V-Green network until 2029 and a ‘Trade Gas for Electric’ initiative to facilitate the switch from internal combustion engine vehicles.

Tapan Ghosh, CEO, VinFast India, said, “We are delighted to mark the milestone of 60 dealerships in India while establishing VinFast’s presence in Bihar for the first time. This marks an important step in our growth journey and opens up new opportunities in a promising market in eastern India. VinFast remains committed to building a strong retail and after-sales network and accelerating the adoption of green mobility across the country.”

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Bengaluru-based electric two-wheeler manufacturer River Mobility has closed a USD 120 million Series C funding round comprising equity and venture debt.

The funding round was led by Elev8 Venture Partners and Claypond Capital, with equity participation from Singularity AMC, Anicut Capital, 360 ONE Asset, JIF Capital and HDFC AMC. Existing investors including Yamaha Motor Corporation, Al Futtaim Group, Mitsui & Co., Alteria Capital, Innoven Capital and Stride Ventures also participated in the round.

The company plans to utilise the capital to expand manufacturing capacity at its factory, construct a greenfield production facility, introduce products in the utility vehicle segment and support margin expansion and EBITDA targets.

River Mobility launched its Indie model in 2023 and operates over 75 retail locations across India, with plans to expand to 350 stores by March 2028.

At present, the company says its monthly EV sales have reached 5,000 units.

Aravind Mani, Co-Founder & CEO, River Mobility, said, "This funding marks an important milestone in River's journey. The confidence shown by both our existing and new investors reinforces our belief that there is tremendous opportunity to build India's first utility and design based mobility brand. This capital gives us the ability to accelerate our product roadmap, expand our manufacturing footprint and presence across the country."

Navin Honagudi, Managing Partner, Elev8 Venture Partners, said, “The electric two-wheeler market in India is entering a defining growth phase, driven by strong consumer adoption, improving economics, and increasing demand for differentiated products. River stands out for its sharp product thinking, exceptional execution capability, and a highly differentiated positioning in the market. Aravind, Vipin and the team have built a brand that resonates deeply with consumers looking for brilliant design, utility and durability. We believe River is well-positioned to emerge as one of the defining EV companies from India.”

Sekhar Garisa, Managing Director, Claypond Capital, said, “River has combined disciplined execution and thoughtful product differentiation to rapidly grow and garner customer love in a competitive market. We are excited to support the team as they scale further while contributing to the country’s energy transition and domestic manufacturing ambitions.”

Hajime Jim Aota, Chairman of Yamaha India Group, said, “River’s focus on building vertically integrated electric vehicle technology platform has been a key driver of its success. Yamaha are proud to see the progress made by River so far and are excited about being part of the next phase of growth.”

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