A recent analysis of corporate disclosures and international trade flows has linked mines used in the battery supply chains of major Western carmakers, including Volkswagen, Ford and Tesla, to the clearing of primary rainforest on the Indonesian island of Sulawesi. The affected areas are described as nickel-rich woodlands inhabited by the Tolaki people.
Background and scope of findings
The review examined company filings and shipment records from the last two years and identified connections between nickel extraction sites and widespread tree loss in Sulawesi, a region noted for its biodiversity and home to some of the world’s largest nickel deposits. Nickel is a key ingredient in many electric vehicle cathodes because it raises energy density and extends battery range.
Impact on indigenous lands and ecosystems
The analysis points to deforestation of primary rainforest in areas traditionally used and occupied by Tolaki communities. Conservationists and indigenous rights advocates have long warned that mining for nickel and other minerals can fragment habitats, threaten wildlife and disrupt the livelihoods and cultural practices of local peoples.
Implications for automakers and the EV supply chain
As demand for electric vehicles grows, so does pressure on carmakers to ensure their batteries are sourced responsibly. The findings underscore how complex global supply chains and opaque trading relationships can make it difficult for manufacturers to guarantee raw materials are free from environmental destruction or human-rights impacts.
Potential responses and broader context
The report is likely to intensify calls from investors, campaigners and regulators for greater transparency, traceability and independent verification across battery supply chains. Automakers and battery producers have in recent years increased investment in due diligence and sourcing standards, but the new analysis suggests significant gaps remain between corporate commitments and on-the-ground outcomes.