Anton (not his real name) was thrilled when he secured a position as an operator at the SK Innovations (SKI) car battery plant in Komárom, Hungary, in 2020. He expressed his joy by stating, “I was happy because the money was good, especially for that region.” The gigafactory had just opened and, amid the height of the Covid pandemic, the workload was manageable. However, within six months, Anton parted ways with the company after a urine test revealed that his nickel levels were three times higher than the safety limits. Nickel accumulation has been associated with lung fibrosis, kidney and cardiovascular diseases, as well as cancer of the respiratory tract. Workers exposed to the material also face a higher risk of nasal and lung cancer. Anton, who is a father, explained, “I have kids and I want to raise those kids.”
As Europe gears up its critical raw materials (CRM) industry to combat the looming climate crisis, Anton’s story could become a common occurrence across the continent. CRMs like lithium, nickel, cobalt, and graphite are essential for the clean energy technologies required to combat climate change, from wind turbines to electric car batteries. However, the current supply chains are limited, and scarcities are anticipated in the coming years. Consequently, new EU legislation in the form of the Critical Raw Materials Act aims for 10% of Europe’s CRM extraction, 40% of its processing, and 15% of its recycling to be done domestically by 2030. This move is intended to reduce reliance on third countries with poor human rights and environmental records.
Hungary stands to benefit significantly from this legislation. By 2031, it is projected to be the second largest producer of car batteries and the largest producer of “tier 1” batteries in Europe, as reported by Benchmark Mineral Intelligence (BMI). BMI attributes Hungary’s potential success to its lower labor and land costs compared to Western Europe. However, the health costs of the electric car revolution are yet to be determined. Europe has a high rate of new cancer cases, linked in part to chronic exposure to various substances. Despite this, recent reports suggest that the European Commission is backing away from plans to ban hazardous chemicals, including lithium.
In Hungary, where union representatives expect a significant increase in CRM sector employment from around 7,000 to as many as 40,000 within a decade, concerns about worker safety and regulatory enforcement have been raised. Unions emphasize the need for better protection for workers exposed to dangerous materials. The rapid expansion of battery plants across Europe, including in Hungary, poses challenges in ensuring worker safety and implementing proper regulatory measures.
Amidst these developments, calls for tighter regulatory oversight of substances used in the CRM sector are growing. Industry lobbying efforts in Europe have influenced legal protections for workers and the public. The European Chemicals Agency (ECHA) has recommended a “reprotoxic” classification for lithium, signaling the need for enhanced regulatory measures to protect workers. However, the final decision on this matter remains uncertain.
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