The rapid expansion of the Electric Vehicle (EV) market has been a core narrative of the global shift towards sustainable transport. However, this growth brings increasing scrutiny of the entire environmental impact of electric vehicles, not only during use but throughout their production and supply chains. To meet these demands, automotive manufacturers and supply chain managers have been turning to the Life Cycle Assessment (LCA) of electric vehicles; a rigorous, science-based methodology that quantifies environmental impacts from cradle to grave.
A life cycle assessment (LCA) is a systematic process for evaluating the environmental impacts associated with all stages of a product’s life, from raw material extraction, manufacturing, transportation, use, through to end-of-life disposal or recycling. As it considers the entire life cycle of a product, LCAs reveal hidden environmental costs that are often overlooked in traditional assessments focusing only on a product’s operational phase.
Steps to Conducting an LCA
The LCA framework consists of four interconnected phases:
For electric vehicles, conducting an LCA means analysing impacts such as:
LCAs provide critical data to improve design decisions, reduce carbon footprints and manage resource efficiency across the value chain of EV production.
There has been significant growth of EV adoption over the last decade, driven by policies aimed at decarbonisation and technological innovations in battery design and energy efficiency. According to the International Energy Agency (IEA), global EV sales surpassed 14 million units in 2023, accounting for 18% of total car sales. However, despite their zero tailpipe emissions, EVs are not inherently sustainable without scrutiny of their full life cycles.
Global Electric Car Stock (2013-2023)
Source: Global EV Outlook 2024 | IEA
Key Environmental Concerns in EV Production
These factors underscore the necessity for a life cycle assessment approach in sustainable EV production.
Life cycle assessments have become increasingly important for the electric vehicle industry as manufacturers strive to minimise environmental impacts across supply chains. From a lifecycle perspective, the whole life GHG emissions of a medium-size battery electric car are half the emissions of an equivalent internal combustion engine car as a global average. However, this performance varies significantly by country depending on electricity generation sources. LCAs provide several critical benefits for EV supply chains. First, it prevents burden-shifting between lifecycle stages. Without comprehensive assessment, improvements in one area might inadvertently increase impacts elsewhere. Additionally, LCAs identify environmental hotspots where impact reduction efforts should be concentrated.
Read More: Why Every Product Should Have a Life Cycle Assessment in 2025
The life cycle assessment of electric vehicles is central to:
Transparency and Credibility: Customers, regulators and investors increasingly demand evidence-based claims on sustainability performance.
Regulatory Compliance: Policies such as the EU’s Carbon Border Adjustment Mechanism (CBAM) and forthcoming sustainability reporting standards require detailed environmental data across the supply chain.
Competitive Differentiation: Demonstrating reduced life cycle emissions can be a key selling point in a crowded EV market.
Supply Chain Risk Management: Identifying hotspots in the supply chain helps mitigate risks from resource scarcity and regulatory changes.
The automotive industry's gradual move from combustion engines to EVs has created a completely new supply structure. Each stage brings unique environmental challenges that need careful mapping to make sustainable manufacturing decisions.
Key Stages in the Life Cycle Assessment of Electric Vehicles
Raw Material Extraction and Processing
Mining and processing of critical battery materials such as lithium, cobalt and nickel are resource-intensive and environmentally impactful. For instance, cobalt mining has been linked to human rights issues and significant carbon emissions. These materials form the upstream part of the supply chain where the first major environmental effects show up.
Battery Manufacturing
Materials move to the midstream part of the supply chain after extraction. Here they go through processing, refining and assembly into battery cells. This stage includes several steps like material purification, electrode production and cell formation. These steps are resource-intensive and need exact environmental controls and special equipment, which adds to the supply chain's complexity in lifecycle assessment.
Vehicle Assembly and Logistics
The downstream supply chain focuses on putting battery cells into modules and packs before adding them to vehicles. Battery modules hold several cells, anywhere from under 10 to hundreds, arranged in series or parallel inside protective metal frames. These modules come together to form battery packs with extra protective parts before going into the vehicle. Batteries make up half an EV's cost and a quarter of its weight. Transportation of components and finished vehicles within global supply chains also adds to the carbon footprint.
Use Phase
The environmental impact during vehicle use depends heavily on the electricity generation mix and where the car is driven. Places with lots of renewable energy result in lower environmental impacts, particularly relating to GHGs, when compared to areas that still rely on fossil fuels.
End-of-Life and Recycling
End-of-life management, including battery recycling and reuse, is vital to reducing the environmental footprint and conserving scarce resources. Efficient recycling processes can significantly lower the demand for virgin raw materials.