Are the minerals powering the energy transition being sourced responsibly?
Earlier this year I had the privilege of speaking at Battery Minerals Australia 2026 in Perth, alongside experts including Jaye Connolly (Ripplenami) and Andy Symington (KPMG). A key theme across the event was the growing recognition that human rights risks — particularly forced labour, child labour and human trafficking—are embedded within parts of the critical minerals supply chain.
If the energy transition is to maintain credibility, addressing these risks must become a priority.
The Scale of Modern Slavery
Modern slavery remains one of the most pressing human rights challenges globally. Today, around 50 million people are living in modern slavery, including 28 million in forced labour.
Forced labour generates an estimated US$236 billion in illegal profits each year, highlighting the scale of exploitation that still exists within parts of the global economy.
Critical minerals supply chains can be particularly vulnerable due to:
- Complex, multi-tier global supply networks
- Reliance on labour brokers and migrant workers
- Production pressure driven by rapidly growing demand
- Operations in regions with weak labour protections
These factors mean exploitation can occur far upstream from the companies ultimately purchasing the minerals.
Risks Across the Battery Supply Chain
Several investigations highlight how these risks are manifesting across the sector.
In the Democratic Republic of Congo, which produces roughly 70% of the world’s cobalt, tens of thousands of children have been documented working in artisanal mines under hazardous conditions.
In Indonesia’s expanding nickel sector, reports have identified indicators of forced labour including passport confiscation, debt bondage and wage theft affecting migrant workers.
Research examining lithium-ion battery supply chains also suggests that around 75% may have links to alleged forced or child labour abuses, particularly in raw material extraction and refining.
These findings reinforce an important point:
Human rights risks do not disappear once minerals leave the mine site – they can persist throughout the entire battery supply chain.
Regulation Is Raising Expectations
Governments are increasingly responding with stronger due diligence legislation.
Companies connected to critical minerals may now fall under laws such as:
- Australia’s Modern Slavery Act 2018
- The Uyghur Forced Labor Prevention Act (United States)
- Germany’s Supply Chain Due Diligence Act
- The EU’s Corporate Sustainability Due Diligence Directive
- Canada’s Forced Labour and Child Labour in Supply Chains Act
These frameworks signal a clear shift: organisations are now expected to demonstrate meaningful due diligence, not simply report risks.
Moving From Compliance to Effective Due Diligence
At the summit, I shared a four-part blueprint for modern slavery due diligence in the mining sector.
1. Investigation and Risk Mapping
Map supply chains beyond Tier 1 suppliers, assess geographic and sector risks, and conduct on-ground due diligence where necessary.
2. Supplier Engagement
Collaborate with suppliers through forums, training and capacity-building initiatives that strengthen labour protections.
3. Controls and Governance
Embed modern slavery risk management into policies, procurement processes, supplier codes of conduct and responsible recruitment practices.
4. Reporting and Accountability
Track indicators such as supplier audits, worker grievances and remediation outcomes to measure whether interventions are actually working.
A Critical Moment for Responsible Supply Chains
Our benchmarking of major Australian mining companies found that 73% of ASX-listed firms now identify modern slavery risks in their operations.
However, many organisations still struggle with supply chain traceability, deeper supplier engagement and measuring the effectiveness of mitigation efforts.
The energy transition is one of the most significant industrial transformations of our time. But its long-term success depends not only on reducing emissions, but also on ensuring ethical and transparent supply chains.
A clean energy future must also be a just transition for the workers and communities behind the minerals that make it possible.
How Unchained Solutions Can Help
At Unchained Solutions, we support organisations across mining, construction, agriculture, finance and government to identify, assess and address modern slavery risks in their operations and supply chains.
Our work includes:
- Modern slavery risk assessments
- Supply chain due diligence frameworks
- Supplier engagement and training
- Modern Slavery Act reporting and compliance support
If your organisation is navigating modern slavery risks in complex supply chains, we would welcome the opportunity to work with you.
