The push for electric vehicles (EVs) promises a cleaner future, but the production of their batteries comes at a steep cost to Indonesia’s small islands. Nickel, a critical component in many EV batteries, has spurred mining activities that devastate local ecosystems and communities.
Nickel batteries—particularly Nickel Cobalt Manganese (NCM)—dominate the EV market, accounting for 60% of market share, according to the Global EV Outlook 2023. While alternatives like Lithium Ferro Phosphate (LFP) are gaining traction, the demand for nickel remains robust. In July 2024, global EV sales increased by 21% compared to the previous year, with Chinese-made vehicles leading at 800,000 units sold.
Indonesia holds 52% of the world’s nickel reserves, making it a central player in this booming industry. Nickel exports surged tenfold by 2023, propelled by government policies promoting “downstreaming”—the process of refining raw nickel into higher-value products.
For the rest of this column: https://chinaglobalsouth.com/analysis/indonesias-small-islands-pay-the-price-for-nickel-mining/