Environment & Climate
Analysis links Indonesian nickel mines to Volkswagen, Ford and Tesla battery supply chains
The Guardian reports that batteries from Volkswagen, Ford and Tesla may contain nickel from deforested Indonesian woodlands.
The short version
- An analysis reported by The Guardian says nickel from Indonesian mines may be in Volkswagen, Ford and Tesla batteries.[The Guardian]
- Ore from the Cahaya and Hengjaya mines was traced through Zhejiang Huayou Cobalt, which supplies CATL.[The Guardian]
- An Auriga analysis says SCM, which operates the Cahaya mine, contributed to clearing 330 more forest hectares in 2024.[The Guardian]
- CATL, Huayou, SCM and Tesla did not respond to requests for comment, so the carmakers' supply links remain unconfirmed.[The Guardian]
Key facts
- Shipments of mixed hydroxide precipitate from the Morowali plant to China were worth $606m in 2024 and $470m in 2025.[The Guardian]
- Volkswagen's Braunschweig facility received 24 tonnes of cell modules worth about $390,000 in October 2024, according to Volza trade data.[The Guardian]
- The International Energy Agency projects global nickel demand will double to 5.5m tonnes by 2040.[The Guardian]
- A spatial analysis by The TreeMap suggests nickel mining may be responsible for two-thirds of forest loss since 2001 in the Cahaya concession.[The Guardian]
- An Auriga analysis found SCM contributed to clearing 330 additional hectares of forest in 2024.[The Guardian]
- SCM received two administrative sanctions last year for clearing more than 450 hectares beyond its permitted area; it is a subsidiary of Merdeka Battery Materials, whose shareholders include Huayou and CATL.[The Guardian]
What remains uncertain
- Whether nickel from these mines is in the batteries of specific carmakers is unverified; the analysis says batteries may contain it.[The Guardian]
- The forest-loss attribution to nickel mining is an estimate from spatial analysis, and CATL, Huayou, SCM and Tesla did not respond to requests for comment.[The Guardian]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.