A new report exposes troubling evidence that dozens of major Western corporations are linked to state-imposed forced labor in China. Further, the critical minerals in the major corporation’s supply chains are increasingly concentrated in the Uyghur Region. The findings shine a spotlight on the often-overlooked human cost behind global transitions to renewable energy and advanced technology.
Forced labor in China’s critical minerals strategy
The Global Rights Compliance (GRC) has published a 77-page report following an 18-month investigation. It traces the systemic use of state-imposed labor transfers in China’s push to dominate production of titanium, lithium, beryllium, and magnesium. These are all key minerals used in everything from smartphones to solar panels.
The Diplomat reports,
“Western companies in sectors ranging from household goods to nuclear energy are exposed to state-imposed forced labor in the Uyghur region through critical mineral supply chains,” said Caroline Dale, legal adviser at Global Rights Compliance and co-author of the report.
The report identifies 68 international corporations with potential exposure to forced labor in the Uyghur Region. Some of the recognizable names include Coca-Cola, Costa Coffee, Starbucks, and Walmart. However, BASF was the only company to respond. The company stated it “has not had a business relationship” with the implicated Chinese firm since 2018.
Targeted labor transfers and lack of transparency
Despite sanctions under the Uyghur Forced Labor Prevention Act (UFLPA), the report finds that US companies continue to source from the region. One example is Xinjiang Nonferrous, a sanctioned lithium processor named as a supplier in several Western supply chains.
GRC’s report follows a surge in critical mineral exports from the region—up 21.8% in 2024 to nearly $60 billion. Even as international scrutiny of Uyghur forced labor grows, exports to the US increased by 280%, and to the UK by more than 595%.
The report argues that China deliberately emphasizes the Uyghur Region in its critical minerals strategy. It documents how authorities forcibly transfer Uyghur workers to mines and mineral processing facilities, supported by government records, academic studies, shipping data, and state media. Resistance often results in harassment, imprisonment, or threats to livelihoods.
According to Dale, “These programs are a ‘facilitator’ of the state’s continuing crimes against humanity.”
Despite restrictions on data sharing and increased enforcement of China’s Anti-Espionage Act, according to Dale, the report presents “an evidentiary basis to evaluate exposure to forced labor in the Uyghur Region through critical minerals.”
Companies and governments must act responsibly
In response to the report, the Coalition to End Forced Labour in the Uyghur Region—of which Freedom United is a steering committee member—stated:
“Governments and companies that rely on critical minerals for the production of their goods have both the power and responsibility to take immediate action to eliminate reliance on Uyghur forced labour.
Further, given the importance of critical minerals to the transition to renewable energy, governments must introduce additional measures that will enable diversification of renewable energy technology supply chains.”
The EU is preparing to enforce its new Forced Labor Regulation. US agencies enforce the UFLPA with the list of restricted companies continually growing. The pressure is now on companies and governments to ensure that the green transition does not come at the cost of forced labor.
As the world moves toward clean energy, companies and policymakers must ensure full supply chain traceability. Freedom United supports action to compel companies to root out Uyghur forced labor at every tier of production. Further, we also urge governments to close loopholes that enable exploitation under “strategic sourcing.”
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