Proponents of hybrid and electric cars say they are a greener alternative to petrol and diesel cars.
But the industry’s supply chains could be “rife with human rights and environmental abuses,” according to recently published research into the mining of nickel, a key component in electric vehicle (EV) batteries.
“Nickel mining in Indonesia is leading to deforestation and environmental damage,” the London-based Business & Human Rights Resource Centre (BHRRC) said. The centre warned of “threats to ancestral homes and livelihoods” faced by “small island communities” in parts of the vast archipelago.
According to the Center, nickel mining has led to “widespread deforestation” and, in two locations, “water pollution.”
According to the Center, more than 20 well-known car brands could be involved in the contaminated battery supply chains. The Center has also sent questions on the matter to Toyota, Honda, Audi, Jaguar, Hyundai, Ford and General Motors, among others.
Of the companies approached, only BMW, Mercedes-Benz, Tesla and Volkswagen responded, indicating that they either do not source nickel directly or try to ensure that suppliers of parts and components respect human rights and protect the environment.
With over 20% of known reserves and over 60% of mining, Indonesia is the world’s largest source of nickel.
In second place is the Philippines, another Southeast Asian archipelago. Last year, the Center said it had found evidence of environmental problems similar to those in neighboring Indonesia.
The Indonesian government is trying to build a battery manufacturing industry to capitalize on growing demand for the metal, fueled in part by demand for electric cars and net-zero requirements implemented by governments in Europe and North America.
The International Energy Agency (IEA) estimates that global demand for nickel and other metals and minerals such as cobalt, copper and lithium (needed as alternatives to fossil fuel engines in cars and aircraft) will increase significantly in the coming decades.
