Canberra’s Yutong buses are supplied by VDI Australia, with batteries produced by China’s Contemporary Amperex Technology Company Limited (CATL). Photo: ACT Government.
Transport Canberra is “working closely” with the supplier of its electric Yutong buses after claims the batteries may be produced by slave labour in China.
The ACT Government signed a deal with Vehicle Dealers International (VDI) in 2023 for the delivery of 90 Yutong E12 electric buses.
These use batteries produced by China’s Contemporary Amperex Technology Company Limited (CATL), which makes up to 30 per cent of the world’s electric vehicle (EV) batteries.
China itself processes 60 per cent of the world’s lithium for EV batteries, with the majority of the work carried out in the Xinjiang region.
Last year, a US House Select Committee claimed it had “indisputable evidence” that the production of CATL batteries was connected to forced labour camps in Xinjiang’s Uyghur Autonomous Region.
The committee claimed CATL provides materials for the Chinese paramilitary organisation Xinjiang Production and Construction Corps (XPCC), which is currently sanctioned by the US for its “direct contribution” to the Uyghur genocide.
It also said CATL provides material to a subsidiary of Xinjiang Nonferrous, a CCP-owned enterprise “known for its prolific use of forced labour”.
In January 2025, CATL was among a list of companies blacklisted by the US Department of Defense for suspected ties to the Chinese military.
CATL has denied the claims and said information about suppliers had been cited in an “inaccurate and misleading way” and that it had ceased trading with certain suppliers “long ago”.
Transport Canberra is “working closely” with bus supplier VDI Australia. Photo: ACT Government.
But earlier this month, NSW Anti-Slavery Commissioner Dr James Cockayne announced a review into the state’s procurement of electric buses “given the high modern slavery risks inherent in EV supply chains”.
The NSW Government has orders with Foton Mobility Distribution (FMD) and VDI Australia for 319 electric buses as part of its plan to put 1700 onto Sydney roads by 2028.
In a statement to the ABC, Dr Cockayne said he was “gathering information on government agency due diligence related to modern slavery in relevant supply chains”.
The commissioner will report his findings to the NSW Attorney-General, who will then provide the report to the presiding officer of each house of parliament.
Canberra Liberals leader Leanne Castley pressed Transport Minister Chris Steel about the matter in the Legislative Assembly this week and what it means for the ACT Government’s contracts with VDI.
“I am concerned that for all of their claims about caring for human rights, [the government] has failed to undertake even the most simple of checks about how these buses are produced,” Ms Castley later said in a statement.
“I think any Canberran would be very concerned if these buses were linked to allegations of slave labour and it really is incumbent on the government to undertake a review of their procurement processes.”
Mr Steel said the government does consider the “ethical treatment of workers” thanks to recent changes to procurement laws but took the question on notice, saying he wasn’t sure whether the contract with VDI came before these changes or not.
“I don’t think those [claims] have been verified at this point in time, and that’s the process Transport Canberra is undertaking … but there is, of course, a process for those claims to be made to the ACT Government for consideration in future procurements as well.”
ACT Minister for Transport Chris Steel inside Transport Canberra’s first electric bus. Photo: ACT Government.
In a subsequent response, a government spokesperson confirmed Transport Canberra executives are “working closely” with the supplier, but there has been no evidence yet of “any incidences of modern slavery involved in its operations and supply chain”.
VDI said it had undertaken “several steps” to get to the bottom of the claims, including monitoring and evaluating its sub-contractors, educating staff on the activities constituting modern slavery, and requiring all of its suppliers to comply with a code of conduct and keep strong records.
An audit of VDI in February 2025 also “failed to detect any incidences of actual or suspected occurrences of modern slavery in the supply chain”.
“Transport Canberra will continue to work closely with VDI,” the ACT Government spokesperson concluded.
“All ACT Government agencies are required to consider ethical behaviour by suppliers … This includes being alert to modern day slavery and leveraging national and inter-jurisdictional initiatives to abate such practices.”
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