Proponents of hybrid and electric cars say they are a greener alternative to petrol and diesel vehicles.
But the industry’s supply chains could be “riddled by human rights and environmental abuses,” going by newly-published research into the mining of nickel, a key component in electric vehicle (EV) batteries.
“Nickel mining in Indonesia is driving deforestation and environmental harm,” according to the London-based Business & Human Rights Resource Centre (BHRRC), which warned of “threats to ancestral homes and livelihoods” faced by “small island communities” in parts of the vast archipelago.
Nickel mining has caused “widespread clearing of forests” and, in two locations, “contamination of water,” the Centre said.
More than 20 household-name car brands could be linked to the tainted battery supply chains, the Centre suggested, adding that it sent questions about the issue to Toyota, Honda, Audi, Jaguar, Hyundai, Ford and General Motors, among others.
But of the companies contacted, only BMW, Mercedes-Benz, Tesla and Volkswagen replied, saying they either do not source nickel directly or try to make sure 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 biggest source of nickel.
In second is the Philippines, another south-east Asian archipelago, where the Centre last year said it had found indications of similar environmental concerns to those in neighbouring Indonesia.
The Indonesian government has been attempting to establish a battery production industry to capitalise on the growing demand for the metal, which had been driven in part by demand for electric cars and net zero requirements put in place by governments in Europe and North America.
The International Energy Agency (IEA) estimates that global demand for nickel and for other metals and minerals such as cobalt, copper and lithium – needed to make alternatives to fossil fuel-powered engines for automobiles and aircraft – will soar during the coming decades.
