The supply chain is one of Amazon’s most powerful competitors.
Editor’s note: Amazon has a brand called AmazonBasics, which is all produced by Amazon’s outsourcers. One of them is very popular. It is an alkaline battery. Sarah Emerson purchased the battery and the explosion occurred. He conducted an in-depth investigation and wanted to find out what the battery supply chain is like. Unfortunately, this supply network is quite mysterious. This article was compiled from an original article titled “Unraveling the Secret Supply Chain Behind an AmazonBasics Battery.”
Suddenly, there was a “beep” sound in my living room. It turned out that the Amazon battery exploded and the black matter scattered around. Amazon set up the AmazonBasics brand and sells a variety of “homemade” products. The battery I use is under the AmazonBasics brand. AmazonBasics batteries have received more than 20,000 reviews, which have dwarfed other AmazonBasics products, including electronics and household items.
Amazon battery is highly rated. I searched the Alkaline Battery Review page and wanted to see which comments contained the word “explosion” and found dozens of accidents like me. One user said that the battery exploded on his wife’s milking machine; others said that the appliance was damaged by leaked liquid. Some people think that the culprit is the Chinese manufacturer, but Amazon introduced the product only vaguely that these products are made in Indonesia, and the technology comes from Japan.
In the past few months, I have studied it in depth to find out the hidden secrets of AmazonBasics batteries. The Amazon network is quite mysterious. It outsources its products to other companies for production. The supply chain is like a fog, which is difficult to see. The AA batteries produced by Amazon are the same. Amazon buys batteries from suppliers and lets them put on their skin. From start to finish, Amazon did not disclose the source of AmazonBasics products, but in an interview with OneZero, Amazon did talk about where AA batteries came from.
Although I can find the source of the battery, the source of the material is not found. Even if you just want to understand the supply chain of simple components, it is very difficult to explain that Amazon deliberately designed the operation into a “black box.” Because of its mystery, Amazon has a strong competitive edge, which can provide goods at a faster, cheaper price. As consumptionWhat are the production conditions for the Indonesian battery factory? FKD declined to comment. Why is the factory built there? It may be because the environmental requirements are relatively loose. In Bekasi, there are many factories that emit waste gas and sewage, and the Fujitsu Indonesia factory is in the dirtiest area. According to the Fujitsu Sustainability Report, the 2016 FDK Intercallin battery plant emits 100 metric tons more waste than the second-ranked FDK Energy.
Alexis Bateman, director of the Sustainable Supply Chain Program at the Massachusetts Institute of Technology, said: “In Indonesia’s regulation, if there is anything wrong with it, the risk is low for companies like Fujitsu.”
For battery manufacturers, there is another advantage to choosing Indonesia: there are abundant natural resources.
Where is the battery raw material purchased from? Is there a direct purchase from Indonesia? Fujitsu declined to comment. It is reported that companies such as Tesla and Apple may purchase raw materials from Indonesia because resource reserves have begun to decrease. Tesla plans to build a battery factory in Sulawesi, central Indonesia. The Indonesian government restricts the export of nickel and copper, perhaps to support domestic battery factories.
Fujitsu batteries use bismuth dioxide, graphite, zinc, and potassium hydroxide. They may also include paper, nylon, polyvinyl chloride, and steel. How many raw materials are recycled and how much is recyclable? we do not know.
Turner said: “These materials are not toxic and do not pose a threat to human health, so the regulation is not so strict. Essentially, alkaline batteries are delicate dirt hidden in a cylinder.”
Despite this, the process of producing batteries is dirty. 76% of the world’s strength comes from South Africa, China, Australia, and Gabon. It is difficult to trace the supply chain and it is almost impossible to track. In other words, there may be chaos in the process of refining, it is difficult to know which company is the beneficiary, because it is extracted from a variety of intermediates.
The production of zinc also emits exhaust gases into the air, such as sulfur dioxide, which directly threatens human health.
To provide faster and cheaper delivery services, there is an invisible hidden reality behind the cost of people and the environment. There are many reports that accuse Amazon of saying that the wages it pays to contract drivers are not high enough, as well as monitoring drivers and extending working hours. It is estimated that in 2017, Amazon’s distribution service will emit up to 19 million metric tons of carbon dioxide, equivalent to five times that of coal-fired power plants.
How did the battery end up in the end? We are familiar with it: when it is used up, throw it away.
AA batteries account for 46% of AmazonBasics battery sales. Consumers buy AmazonBasics products for $10, and buy batteries for about $1. AA alkaline batteries account for 4% of AmazonBasics sales. In other words, AmazonBasics battery has become the leader of the American AA alkaline battery, and is more popular than the familiar brands Energizer and Panasonic.
1010data senior director Matt Pace said: “Amazon has the ability to actively promote its own battery brand, which is why it has become a leader in the network battery market, in order to maintain market share, the US big brands Energizer and Duracell can only compete.
Everyone uses batteries, and its environmental impact has been underestimated. MIT researchers have pointed out in the report that the biggest negative effect appears upstream of the manufacturing end. Electricity is used in manufacturing, and this process has the greatest impact on the environment. When the United States produces batteries, much of it is obtained by burning fossil fuels, and renewable energy is only a small fraction. About 88% of battery damage to the environment comes from purchasing and processing.
According to the data provided by MIT, in the process of manufacturing alkaline batteries, the energy consumed is more than 100 times more than the process of use. Adding all of the battery’s emissions, including purchasing, manufacturing, and shipping, it emits 30 times more greenhouse gases than coal-fired power plants—in watt-hours.
All of this tells us one thing: the carbon emissions of appliances equipped with alkaline batteries are much higher than those of electrical outlets.
The United States allows users to throw waste batteries into trash cans. Although batteries are one of the biggest sources of waste for heavy metals, the United States does not have a special policy that requires abandoning batteries to be classified as toxic or non-toxic. The MIT report also said that policy makers are unable to agree on whether alkaline batteries are toxic.
Turner said: “The problem is that the battery is too small, everywhere. If you want to collect recycling, it takes a lot of energy. If you do, you may consume more energy than you can save.”
Fujitsu pointed out that consumers can replace disposable batteries with durable batteries or rechargeable batteries. Compared to other major battery vendors, Amazon does not seem to be doing enough in terms of recycling. On the Amazon battery, only the rechargeable battery is labeled with recycling information, but Amazon said that the disposable battery will soon be marked with recycling information.
Not long ago, thousands of Amazon employees made a request to urge the company to accept a climate action plan; in September, Amazon CEO Bezos announced “Climate Pledge” (climate commitment). Amazon’s plan is ambitious, and it is ready to achieve zero emissions by 2040. In 2030, the company will use renewable energy. But the fact behind the promise is ironic: Amazon has just begun to track its carbon footprint, and its emissions in 2018 were 44.4 million metric tons, equivalent to emissions from Switzerland or Denmark.
Amazon claims that this number includes carbon emissions from the production of the product. In fact, Amazon will outsource manufacturing, so some of the emissions are hidden. Bateman believes that if it is true, Amazon should strengthen control over the AmazonBasics supply chain, but it has not done so for a long time, so Amazon’s behavior is very suspicious, Amazon is not a new company.
Why does my AmazonBasics battery explode? I don’t know why. An Amazon spokesperson said the company has started investigations and even hired a third-party testing lab to see if there are loopholes in the battery design. The spokesperson also said: “We will thoroughly investigate all kinds of hidden concerns and ensure that the products are absolutely safe.” The unused batteries are still there, covered with dust, I don’t know how to recycle them.
The Amazon battery is needed for everyday life, and its practicality masks the complexity behind it. Rodrigue said: “Why Amazon wants to disclose its supply chain to its competitors. The supply chain is its advantage.”
Translator: Xiaobing Hand