Guardian: VW, Ford, and Tesla batteries linked to Indonesian rainforest deforestation
What happened
An analysis of corporate disclosures and trade flows indicates that batteries used by Volkswagen, Ford, and Tesla may contain nickel sourced from indigenous woodlands in Sulawesi, Indonesia. These regions, home to the Tolaki people, are reportedly experiencing widespread deforestation due to mining activity.
Why it matters
The findings highlight significant supply chain vulnerabilities for automakers. As companies rely on nickel to improve battery energy density and range, they face challenges in ensuring their raw materials are extracted ethically and sustainably from ecologically sensitive areas.
Bigger picture
The report illustrates the tension between the global energy transition's surging mineral demand and the protection of biodiversity and indigenous territories. It underscores the difficulty of decoupling the EV supply chain from environmental degradation in primary rainforest regions.
Watch next
Watch for potential supply chain disclosures or policy responses from Volkswagen, Ford, and Tesla regarding their nickel sourcing standards in Indonesia.