News

🗞️ U.S. Invests $22M to Combat Labor Exploitation in Critical Mineral Supply Chains

The U.S. Department of Labor awarded $22 million to address labor exploitation in Indonesia's nickel industry and the DRC's mineral sector, where documented abuses include forced labor, child labor, and unsafe working conditions.

onthelaborfront

12 Jan 2026 — 2 min read

The U.S. Department of Labor announced $22 million in funding through four cooperative agreements aimed at eliminating labor exploitation in critical mineral supply chains. The grants target two regions where extensive labor rights violations have been documented by human rights organizations, academic researchers, and government agencies.

In Indonesia, $7 million was awarded to Winrock International and $3 million to the Center for Advanced Defense Studies to address labor exploitation in the country's nickel supply chain. Indonesia produces approximately 50% of the world's nickel, a critical component for electric vehicle batteries. The U.S. Department of Labor added Indonesian nickel to its 2024 List of Goods Produced by Child Labor or Forced Labor following multiple reports of labor abuses. Documented violations include excessive overtime, unsafe conditions, withheld wages, passport confiscation, and debt bondage affecting both migrant and local workers at large industrial parks operated primarily by Chinese-Indonesian joint ventures.

In the Democratic Republic of Congo, $7 million was awarded to Pact and $5 million to World Vision to address exploitative labor practices in cobalt, copper, tantalum, tin, and tungsten supply chains. The DRC accounts for over 70% of global cobalt production and holds more than half the world's cobalt resources. A Department of Labor study estimated that 78% of employed cobalt workers experience forced labor, with workers in artisanal mines earning as little as $2 per day under hazardous conditions. The mining sector is characterized by high concentration, with Chinese companies controlling approximately 80% of critical mineral production in the DRC, and most materials are sent to China for processing.

The funding supports objectives outlined in a recent Executive Order on mineral production by ensuring that sourcing practices meet international labor standards. Globally, China controls approximately 60% of critical mineral production and 85% of processing capacity, creating supply chain vulnerabilities when labor standards are not enforced. The projects, administered by the Bureau of International Labor Affairs, aim to improve transparency and accountability in mineral sourcing while protecting workers' rights and providing companies with access to ethically-sourced materials.

Key Points

$22M Total Funding: Split across four organizations working in Indonesia ($10M) and Democratic Republic of Congo ($12M)
Indonesia Focus: Nickel supply chain; U.S. added Indonesian nickel to forced labor list in 2024 based on documented violations
DRC Focus: Cobalt, copper, tantalum, tin, and tungsten; research estimates 78% of cobalt workers experience forced labor
Supply Chain Context: High concentration in both regions, with China controlling 80% of DRC production, 60% of global production, and 85% of global processing
Documented Violations: Include child labor, forced overtime, wage theft, unsafe conditions, passport confiscation, and debt bondage
Program Objectives: Eliminate exploitative practices, improve transparency, and ensure compliance with international labor standards

Primary Source Author: U.S. Department of Labor, Bureau of International Labor Affairs

Primary Source: U.S. Department of Labor, Bureau of International Labor Affairs

Primary Source Link: https://www.dol.gov/newsroom/releases/ilab/ilab20260112-0