Product Overview

Summary: This SOP provides a structured, defensible approach to sourcing raw materials for electric vehicle (EV) manufacturing, with a strong focus on ethical, sustainable and compliant supply chains. It helps Australian businesses demonstrate due diligence on modern slavery, environmental impacts and product quality while maintaining commercial competitiveness.

Electric vehicle manufacturers and component suppliers in Australia face intense scrutiny over where and how their raw materials are sourced. Critical inputs such as lithium, nickel, cobalt, graphite, rare earth elements and aluminium carry heightened environmental, social and governance (ESG) risks, from modern slavery and child labour through to significant land, water and biodiversity impacts. This Electric Vehicle Raw Material Sourcing Standard Operating Procedure establishes a clear, repeatable framework for identifying, assessing and engaging suppliers in a way that aligns with Australian regulatory expectations, global OEM requirements and investor ESG benchmarks.

The SOP guides your team through every stage of the sourcing lifecycle – from defining specifications and ESG criteria, pre-qualifying and onboarding suppliers, and conducting due diligence, through to contracting, ongoing performance monitoring and periodic re‑assessment. It is designed to help Australian EV businesses demonstrate robust governance under the Modern Slavery Act 2018 (Cth), respond confidently to customer and investor queries, and reduce exposure to supply disruptions and reputational damage. By standardising how raw material sourcing decisions are made and documented, this SOP supports consistent quality, ethical supply chains and long‑term commercial resilience in a rapidly evolving market.

Key Benefits

• Standardise raw material sourcing decisions across procurement teams, regions and business units.
• Demonstrate clear due diligence on ESG risks to customers, regulators and investors.
• Reduce exposure to supply chain disruptions, non‑compliance and reputational damage.
• Strengthen negotiation and supplier management through defined criteria and evidence requirements.
• Streamline reporting for modern slavery statements, sustainability reports and customer audits.

Who is this for?

• Procurement Managers
• Supply Chain Managers
• Sustainability Managers
• ESG and CSR Managers
• Operations Managers
• Compliance and Risk Managers
• Quality Assurance Managers
• Category Buyers – Metals and Minerals
• Legal and Governance Advisors
• Directors and Business Owners in EV Manufacturing and Assembly

Included Sections

• 1.0 Purpose, Scope and Objectives
• 2.0 Definitions and Key Terms (EV Raw Materials, ESG, High-Risk Jurisdictions)
• 3.0 Roles, Responsibilities and Approval Authorities
• 4.0 Applicable Legislation, Standards and Corporate Policies
• 5.0 Raw Material Categories and Specification Requirements
• 6.0 ESG Risk Assessment Framework for Raw Materials and Source Countries
• 7.0 Supplier Pre-Qualification and Screening Process
• 8.0 Supplier Due Diligence (Modern Slavery, Environmental and Governance Checks)
• 9.0 Evaluation and Selection Criteria (Technical, Commercial and ESG Weightings)
• 10.0 Contracting Requirements and Standard Clauses (Audit Rights, Corrective Actions, Reporting)
• 11.0 Onboarding New Suppliers and Data Collection Requirements
• 12.0 Ongoing Supplier Performance Monitoring and Scorecards
• 13.0 Audit, Verification and Third-Party Assurance Processes
• 14.0 Non-Conformance, Incident Management and Escalation Pathways
• 15.0 Supply Chain Traceability and Chain-of-Custody Requirements
• 16.0 Documentation, Recordkeeping and Evidence Management
• 17.0 Reporting for Modern Slavery Statements and ESG Disclosures
• 18.0 Training, Competency and Awareness for Procurement Personnel
• 19.0 Continuous Improvement, Review and SOP Revision History

Legislation & References

• Modern Slavery Act 2018 (Cth)
• Corporations Act 2001 (Cth) – directors’ duties and continuous disclosure obligations
• AS ISO 20400:2018 Sustainable procurement – Guidance
• AS/NZS ISO 9001:2016 Quality management systems – Requirements
• AS ISO 14001:2016 Environmental management systems – Requirements with guidance for use
• UN Guiding Principles on Business and Human Rights (as referenced in Australian modern slavery guidance)
• OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
• Safe Work Australia – Guidance on Labour Hire and Supply Chains (for broader WHS duties in supply chains)