Recommendations to Ensure Electric Vehicle Compliance with Indigenous Peoples’ Rights and FPIC

Introduction

Future demand projections for transition minerals such as lithium, cobalt, and nickel remain mixed. Some analysts predict a sharp rise in demand due to the expansion of  clean energy technologies, particularly electric vehicles (EVs), however these projections vary widely and will be impacted by factors such as technological advances, recycling capacities, and policy & geopolitical shifts.

Despite these uncertainties one factor remains constant: the imperative for companies to uphold responsible sourcing practices, particularly in regions where mineral extraction intersects with Indigenous lands. Regardless of whether demand projections are met, respecting Indigenous Peoples’ right to Free, Prior and Informed Consent (FPIC) is crucial. It is a legal requirement under international frameworks such as ILO Convention No. 169, while the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) reflects the most comprehensive international standard for Indigenous Peoples’ rights, particularly regarding FPIC. Ignoring these rights not only increases reputational risks but also exposes companies to legal conflicts and project delays, compromising both short-term goals and long-term supply chain stability. In this context, operationalizing FPIC helps ensure that regardless of how mineral demand fluctuates, companies maintain their social license to operate, respect human rights, and contribute to more sustainable, responsible, and equitable supply chains.

We recommend the following actions that outline how the EV industry must align with international standards to ensure the protection of Indigenous Peoples’ rights.

1. Ensure Rigorous Supply Chain Due Diligence

1. Conduct Thorough Risk Assessments: EV automakers should implement robust due diligence processes to trace the origins of their raw materials. This involves identifying and assessing the presence of Indigenous Peoples in sourcing regions, understanding potential impacts to their land, territories and communities, and ensuring that these findings inform sourcing decisions.

2. Adopt and Adhere to International Standards: Integrate the provisions of the UNDRIP, such as Article 32, which emphasizes the right of Indigenous Peoples to FPIC regarding projects impacting their land, territories, and resources, along with ILO 169 into supply chain policies. Ensure that suppliers are contractually obligated to respect FPIC and Indigenous Peoples’ rights by fully committing to these provisions. 

2.  Early and Meaningful Engagement and Consultation

1. Prioritize Early and Ongoing Engagement: ​​Engage with Indigenous Peoples from the earliest stages of project development, including exploration and planning. This engagement must be continuous and transparent, involving direct dialogue with community representatives. It can be through methods like stakeholder meetings, appointing community liaison officers, and conducting cultural, social, and environmental impact assessments.

2. Ensure Free, Prior and Informed Consent: Obtain FPIC before commencing any activities that may affect Indigenous Peoples’ lands or rights. This consent must be obtained without coercion and manipulation, before any decisions are made, and with full disclosure of information regarding the project's potential impacts.

3. Respect Indigenous Governance Structures: Recognize and engage with Indigenous governance systems, ensuring that consultations are conducted in culturally appropriate ways that respect the community's decision-making processes and existing protocols.

3. Adopt Transparent Reporting and Accountability

1. Implement Transparent Reporting Practices: Establish clear reporting mechanisms to disclose efforts to respect Indigenous Peoples’ rights and obtain FPIC. Reports should detail engagement activities, the outcomes of consultations, and measures taken to address community concerns.

2. Publicly Commit to Indigenous Peoples’ Rights:  EVs companies should publicly commit to respecting Indigenous Peoples’ rights and FPIC in their sustainability reports. This commitment must be integrated across all organizational levels, from corporate policies to on the ground-operations, ensuring alignment in decision-making and accountability. 

4. Form Strategic Partnerships and Collaborations

1. Collaborate with Indigenous Peoples’ Representative Organizations: Build partnerships with Indigenous Peoples’ organizations and representatives that are directly connected to affected communities. These organizations can provide critical insights into Indigenous communities’ needs, expectations, key demands, and cultural contexts. Co-creating best practices with these representative bodies would ensure that Indigenous Peoples’ rights are respected in a way that is tailored to the specific needs of Indigenous communities. 

2. Engage with Indigenous-led Organizations and Experts: Work with Indigenous-led organizations, Indigenous Peoples’ rights experts, and legal advisors to ensure compliance with FPIC and Indigenous Peoples’ rights standards. These collaborations can help identify risks and develop effective strategies for community engagement.

5.  Provide ongoing Training and Capacity Building

1. Provide Training on Indigenous Peoples’ Rights: Conduct regular training sessions for employees, suppliers, and contractors on Indigenous Peoples’ rights, FPIC, and the importance of respecting cultural heritage. Training should be tailored to specific roles within the organization to ensure that all stakeholders understand their responsibilities.

2. Support Capacity Building in Indigenous Communities: Invest in capacity-building initiatives that empower Indigenous communities to engage effectively in consultations and decision-making processes as part of a broader FPIC process. This includes providing access to independent legal and technical advice which would strengthen both communities and companies. These efforts should complement the FPIC process and ensure trust-building and more meaningful participation, rather than serving as a substitute for consent.

Respecting Indigenous Peoples’ rights and obtaining FPIC is both an ethical responsibility and in many cases, a legal mandate. Even where FPIC is not legally mandated by law, the expectation to adhere to international standards such as those set forth in ILO 169 and the UNDRIP remains critical. By adopting these recommendations, EV automakers will not only align their operations with global standards but also mitigate risks associated with impacts to community. Integrating Indigenous Peoples’ rights into corporate strategies is a sound business decision that will enhance reputations and build trust with communities and consumers alike. By prioritizing Indigenous Peoples’ rights, companies secure long-term stability, avoid legal challenges, and demonstrate ethical leadership in the global market.

Now is the time for EV automakers to take decisive action. By immediately implementing these recommendations, companies can ensure they are complying with international standards and actively leading the charge for responsible, conflict-free supply chains. Respecting Indigenous Peoples' rights is no longer optional—it is both a legal obligation in jurisdictions that have ratified ILO 169 or incorporated UNDRIP into national law, and a critical business imperative for long-term success. Even in regions where FPIC is not legally mandated, companies that engage respectfully with Indigenous Peoples mitigate risks and ensure more sustainable operations. The industry must act now, setting a precedent that demonstrates how economic growth and respect for Indigenous Peoples’ rights can and must coexist. Without Indigenous Peoples’ consent, the supply of minerals essential for the green economy will become unsustainable, leading to ongoing disruptions in supply chains and persistent conflicts between industry and communities. Securing supply chain stability depends on rights-based engagement with Indigenous Peoples. Companies that lead today will secure social license to operate – which correlates directly to Indigenous Peoples' FPIC – as well as their place as a leader in the future of sustainable energy.

 1. https://www.iea.org/reports/global-critical-minerals-outlook-2024/executive-summary