Nickel in EV Batteries Linked to Deforestation in Indonesia
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
An analysis found that batteries from carmakers like Volkswagen Group, Ford, and Tesla may contain nickel mined in Indonesia. This nickel comes from mines in Sulawesi, a region known for its large nickel deposits. The ore was traced through regional smelters and Chinese processing plants run by Zhejiang Huayou Cobalt, which supplies CATL.
From theguardian.com
Why it matters
The nickel is widely used in car battery cathodes because it boosts energy density and increases range. Satellite analysis shows that the mining operations have led to widespread deforestation of primary rainforest in Central Sulawesi. This highlights environmental risks within the global electric vehicle supply chain.
CATL is expanding its global footprint by building new battery plants and securing projects in Europe and Asia, while supplying major automakers.
From theguardian.com
Who's involved
- TeslaAmerican carmaker whose batteries may contain nickel sourced from Indonesia
- Volkswagen GroupGerman automotive conglomerate whose batteries may contain nickel from Indonesian mines
- FordCar brand whose batteries may contain nickel mined in Indonesia
- IndonesiaGeopolitical state where the nickel mines and deforestation occur
- Central SulawesiProvince in Indonesia where the nickel mines and deforestation are located
- LG Energy SolutionSouth Korean battery maker receiving nickel via a separate route from Zhejiang Huayou Cobalt
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- FordSpeculative
Ford might face increased costs or reduced demand for its vehicles due to reputational damage linked to the nickel sourcing.
- Central SulawesiSpeculative
Central Sulawesi may face reduced local revenue or increased costs related to environmental remediation due to widespread deforestation.
- LG Energy SolutionSpeculative
LG Energy Solution may face supply chain risk or increased costs if the nickel sourcing practices are disrupted or scrutinized.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Nickel mining for EV batteries drives deforestation in Central SulawesiCentral Sulawesi faces environmental damage from nickel mining for EV batteriesLikely
- Nickel sourcing risks may challenge IG Metall's influence at Volkswagen GroupNickel supply chain risks may challenge IG Metall's push for ethical sourcing at Volkswagen GroupPossible
Keep exploring
Part of
CATL is expanding its global footprint by building new battery plants and securing projects in Europe and Asia, while supplying major automakers.Also in this story
- CATL partners with Moura for a Capacity Reserve Auction in São Paulo, utilizing CATL's system in both countries.
- Contemporary Amperex Technology Co. Limited is expanding its battery manufacturing footprint, establishing partnerships and commencing production.
The entities involved
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Tesla
American automotive, energy storage and solar power company
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Volkswagen Group
German automotive manufacturing conglomerate
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Ford
car brand owned by Ford Motor Company
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Indonesia
island country in Southeast Asia and Oceania