Saturday, 17 October 2026 · Full edition

Guardian: VW, Ford, and Tesla batteries linked to Indonesian rainforest deforestation

File photograph: tesla.
File photograph: tesla. · Steve Jurvetson / Wikimedia CommonsCC BY 2.0

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.

Back to today in 60 seconds

Daily brief + free guide

Understand today. Keep the guide.

Get the day’s most important developments explained every morning. Subscribe and we’ll also send you The World, Explained—an India-first guide to economics, markets, business and geopolitics.

Make 7AM a habitPut the brief one tap from your morning.No app-store download. Opens like an app from your home screen.

Never miss the editionGet one quiet alert when the brief is ready.No breaking-news noise and no repeated notifications.

One alert after each edition is successfully published.