Unconfirmed Origin of Nickel: Electric Vehicle Brands Unable to Verify if Supply Originated from Biodiversity Haven Raja Ampat
The nickel mining industry in Raja Ampat, a UNESCO Global Geopark and the world's most biodiverse protected marine area, is under scrutiny due to its potential impact on the environment. The region, home to 75% of the world's coral species and about 2,500 fish species, faces the risk of 500,000 hectares of deforestation, threatening its rich marine ecosystem and local livelihoods.
The demand for nickel, a critical component in electric vehicle (EV) batteries, is driving much of the mining activity. The nickel ore mined from Raja Ampat's two active mines, PT Gag Nikel and PT Kawei Sejahtera Mining, could potentially enter the supply chains of car manufacturers such as BYD, Tesla, BMW, Nissan, and Hyundai. However, supply chain transparency issues make it difficult to confirm whether these companies are sourcing nickel directly from Raja Ampat.
Some EV manufacturers, such as BMW, have stated their commitment to anti-deforestation in their supply chains. BMW, for instance, has a concrete commitment to this cause but admits that its supply is sourced independently and autonomously, which could potentially allow for indirect sourcing from environmentally sensitive areas like Raja Ampat.
The Indonesian government has taken some steps to limit environmental damage. As of June 2025, four out of five nickel mining companies operating in Raja Ampat have had their permits revoked. However, PT Gag Nikel, a major mine, remains active and exempt from license revocation, raising concerns about continued impacts.
Environmental NGOs and Indigenous communities are urging both the Indonesian government and EV supply chains to respect ecological preservation and Indigenous rights. Greenpeace, for instance, has called for an immediate revocation of mining licenses in Raja Ampat and for supply chain actors, including battery producers, to investigate their supply chains and publicly reject the supply of nickel and nickel ore that originates from any mines in Raja Ampat.
In summary, while the Indonesian government has taken some regulatory steps to curb nickel mining in Raja Ampat, electric vehicle manufacturers face challenges in ensuring their battery supply chains do not contribute to deforestation and marine damage there. The complexity of mining operations, legal loopholes, and limited supply chain transparency mean that current industry measures appear insufficient to fully address these environmental concerns. Stronger regulatory enforcement and greater corporate responsibility and traceability in sourcing critical minerals like nickel are needed to mitigate the impact on this biodiversity hotspot.
- Corporate responsibility in the technology industry becomes increasingly crucial as the demand for nickel, essential for electric vehicle (EV) batteries, rises.
- The potential deforestation of 500,000 hectares in Raja Ampat, a UNESCO Global Geopark and the world's most biodiverse marine area, could be detrimental to its diverse marine ecosystem and local livelihoods.
- The supply chain sustainability of EV manufacturers like BYD, Tesla, BMW, Nissan, and Hyundai is under question due to their potential sourcing of nickel from Raja Ampat's active mines, PT Gag Nikel and PT Kawei Sejahtera Mining.
- Despite some EV manufacturers, such as BMW, expressing commitment to anti-deforestation in their supply chains, the independent and autonomous nature of their supply chains raises concerns about indirect sourcing from environmentally sensitive areas like Raja Ampat.
- The Indonesian government has attempted to limit environmental damage by revoking permits for four out of five nickel mining companies in Raja Ampat but PT Gag Nikel, a major mine, remains active and exempt.
- Environmental NGOs and Indigenous communities are advocating for the Indonesian government and EV supply chains to prioritize ecological preservation and Indigenous rights in Raja Ampat.
- Greenpeace, for example, has urged an immediate revocation of mining licenses in Raja Ampat and encourages battery producers to probe their supply chains and reject the supply of nickel and nickel ore sourced from any mines in the region.
- The energy transition, with its growing emphasis on renewable-energy sources, must be cautious about the impact on biodiversity hotspots like Raja Ampat, where deforestation threatens the home of 75% of the world's coral species and about 2,500 fish species.
- As the Sustainable Development Goals (SDGs) continue to guide global development efforts, the role of finance in supporting sustainable businesses and practices in the industry, real estate, and other sectors becomes crucial for mitigating climate-change impacts.
- Energy-efficient lifestyles and investing in businesses focused on environmental-science, such as those dedicated to reducing carbon emissions, can serve as part of the solution to prevent deforestation and protect biodiversity.
- Data-and-cloud-computing technologies and innovative solutions in the travel, education-and-self-development, and sports sectors are instrumental in fostering increased transparency and traceability in global supply chains.
- In the general news, ongoing debates on the responsibilities of businesses, governments, and consumers in addressing the challenges posed by deforestation and climate-change are central to charting a sustainable future for our planet.
- Ultimately, the conversation on corporate responsibility, biodiversity preservation, and the energy transition must be a collaborative effort, engaging all stakeholders, including industry leaders, governments, Indigenous communities, and concerned citizens, to ensure a sustainable and responsible future for our planet.
