Nickel plays a critical role in the green transition as it is one of essential feedstocks for lithium-ion batteries that power electric vehicles (EVs). As Indonesia mines more than half of global nickel today and manufactures approximately two-fifths of the world’s processed nickel, the archipelago has contributed to the global green transition in the energy and transportation sectors. Processed nickel refers to nickel metal, chemicals, and other products that are utilized by industrial consumers, including battery makers and car manufacturers.
This study aims to map the supply chain of battery-grade nickel for EVs, ranging from the production of mined nickel, refined nickel, cathode materials, and EV batteries. The study focuses on specific nickel mining and smelting companies belonging or related to Huayou Cobalt Co., Ltd. operating in Indonesia, and their links to battery manufacturer CATL and German automakers.
The study highlights environmental and human rights violations in the Indonesian nickel industry, such that the battery makers and automakers are at risk of being linked to those violations. German EV makers whose nickel likely arrives from Indonesia have a duty to prevent environmental and human rights violations within their nickel supply chain as stipulated by the Germany Supply Chain Due Diligence Act, the EU Corporate Sustainability Due Diligence Directive, and the EU Battery Regulation. This study’s review and analysis is based on laws applicable in Indonesia, Germany, and the EU.
The study was published by Rosa-Luxemburg-Stiftung and AEER, supported by PowerShift.
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