An analysis of corporate disclosures and trade data links nickel from felled Indonesian rainforest to batteries used by some of the world's biggest carmakers.
When Wadimula, a Tolaki elder, looks out from his home in Sulawesi, he sees the edge of a 21,000-hectare mining concession where forest once stood. His people, he says, used to leave offerings to the trees in return for protection. Now the trees are disappearing, and the ore beneath them may end up in a car in Detroit, Wolfsburg or Shanghai. An analysis of corporate disclosures and trade flows from the past two years suggests that nickel from the Cahaya and Hengjaya mines enters the battery supply chains of Volkswagen, Ford and Tesla, among others.
Satellite imagery shows widespread loss of primary rainforest on the nickel-rich land of the Tolaki. The ore is sent to a smelter in Morowali, on Indonesia's east coast, run by a subsidiary of Zhejiang Huayou Cobalt. There it is refined into mixed hydroxide precipitate, worth $606m when shipped to China in 2024 and a further $470m in 2025. Huayou makes cathodes for CATL, the world's largest battery maker, and its reports list US and European carmakers as customers.
Separate files and trade data point to a second route, via Poland, to the South Korean group LG. The paradox is plain. Electric vehicles remain far less harmful than petrol and diesel engines, yet the minerals that power them are often extracted from some of the planet's most fragile places. Nickel is prized because it increases energy density and range, and Sulawesi holds the world's largest deposits.