They didn't pay for the processing.. We ignore a lot of cost when selling a product, and particularly the cost of recycling, which start to be a huge issue taking in account the amount of waste produced..
Lithium mining isn't particularly bad and it is mostly done in fairly well regulated parts of the world (mainly Australia and Chile) with at least somewhat enforced worker and environmental protections.
It's possible you are thinking of Cobalt which is very bad?
Yeah you're right, cobalt is probably worse, but lithium isn't great either. All unnecessary mining seems pretty horrible to me, even thought these capes might not be as bad as disposable lithium AA s that are probably made in larger qty.