Key facts
- Nickel from Indonesian mines linked to deforestation of indigenous lands.
- Mines Cahaya and Hengjaya supply Zhejiang Huayou Cobalt, a cathode manufacturer.
- Huayou supplies CATL and LG, which in turn supply major automakers.
- Carmakers including VW, Ford, and Tesla may use batteries with this nickel.
- Deforestation has occurred in nickel-rich lands inhabited by the Tolaki people.
- The carbon footprint of nickel from the worst mines may be 500 times greater than reported.
Nickel used in electric vehicle batteries for Volkswagen, Ford, and Tesla may be sourced from mines linked to deforestation of indigenous lands in Sulawesi, Indonesia, an analysis has found. The investigation traced ore from the Cahaya and Hengjaya mines through regional smelters and Chinese processing plants run by Zhejiang Huayou Cobalt, a cathode manufacturer that supplies CATL, the world's largest battery maker, and LG, which also supplies leading carmakers.
Satellite analysis shows the mines have led to widespread deforestation of primary rainforest in nickel-rich lands inhabited by the indigenous Tolaki people. "Destroying [the forest] means destroying our own life," said Wadimula, a Tolaki elder. The ore is refined into mixed hydroxide precipitate, a key material for battery cathodes.
In 2024, $606 million worth of mixed hydroxide precipitate was shipped from Huayou's Morowali plant to China, with further shipments in 2025. Volkswagen received a shipment of cell modules in October 2024 that may have originated from these supply chains. Carmakers including Volkswagen, Ford, Tesla, General Motors, BMW, Stellantis, Hyundai, and Mercedes-Benz are identified as end-users or recipients of products linked to Huayou cathodes or CATL batteries.