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.
Arianto Sangadji has published numerous academic works and reports related to the mining industry and actively writes from a geopolitical economy perspective to advocate for a responsible mining industry.
Linda Dewi Rahayu is a lawyer and public policy analyst dedicated to defending human rights and social justice.
Pradnya Paramarini holds a Master’s degree in Natural Resource Management and is passionate about developing community-focused strategies that promote environmental sustainability.
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.