In the forests of Sulawesi, Indonesia, a quiet displacement is underway — one measured not in conflict but in cleared hectares and severed ancestral bonds. The nickel extracted from indigenous Tolaki lands flows invisibly through Chinese processors and battery manufacturers into the electric vehicles sold by the world's largest carmakers, binding the promise of a cleaner future to the destruction of one of its oldest. This investigation traces that chain from rainforest to assembly line, asking whether the green transition can justify the human and ecological costs it quietly exacts.
EV battery supply chains linked to Indonesian rainforest destruction on indigenous lands
Indigenous Tolaki people face destruction of ancestral forests and traditional livelihoods as mining expands on their lands, with one elder stating the forest's destruction means destroying their own life.
Destroying the forest means destroying our own life
Mark
So the nickel in these batteries—it's actually traceable? We know which mines it came from?
Mimi
Yes. The investigation followed corporate filings and trade data. Ore from Cahaya and Hengjaya mines in Sulawesi went to an Indonesian smelter, then to Chinese processors, then to battery makers, then to carmakers' assembly lines. Volkswagen received a specific shipment in October 2024.
Luke
But there's a gap, right? The filings don't disclose specific volumes or timings from Huayou to CATL. So we can connect the mines to the smelter, and the smelter to the Chinese plants, but the final link to individual car batteries—that's inferred, not directly proven.
Mimi
That's fair. But the carmakers themselves are listed as end-users in Huayou's corporate disclosures. And the trade data shows the material moving through the system.
Mark
What about the forest? How much has actually been cleared?
Mimi
Nickel mining may account for two-thirds of forest loss in the Cahaya concession since 2001. In 2024 alone, the operating company cleared 330 hectares. The company also received two administrative sanctions for illegally clearing over 450 hectares beyond its permitted area.
Luke
So there's illegal clearing on top of the permitted clearing. And the company is a subsidiary of Merdeka Battery Materials, whose shareholders include Huayou and CATL—the very companies in the supply chain.
Mark
What did the Tolaki people say about this?
Mimi
One elder, Wadimula, said they used to ask the forest for protection in return for offerings. He said destroying it means destroying their own life.
Luke
That's a powerful statement, but it's one voice. The reporting doesn't tell us how many Tolaki people live there, what their options are, whether they've organized a response, or what they want to happen next.
Mark
Is there any way to reduce this demand?
Mimi
Yes. A 2023 report found that lithium demand could drop 18 to 66 percent through better public transit and smaller cars. Recycling could cut it by 92 percent.
Luke
Those are potential scenarios, not commitments. And they assume carmakers and consumers will choose smaller vehicles and better recycling. That's not guaranteed.
The Pulse
- Primary rainforest on Tolaki indigenous lands in Sulawesi is being cleared at scale, with nickel mining accounting for the majority of forest loss within two major concessions since 2001.
- The supply chain runs deep and largely unacknowledged — ore from Cahaya and Hengjaya mines moves through Indonesian smelters and Chinese processors to reach the battery cells powering vehicles sold by at least eight major carmakers across Europe and North America.
- When confronted, most automakers deflected: Volkswagen cited contractual limits, Ford said it was reviewing the claims, and none shared results of on-site audits — leaving accountability suspended in corporate language.
- Scientists warn the carbon cost of this nickel may be up to 500 times higher than reported once deforestation is factored in, fundamentally undermining the climate logic of the EV transition.
- Experts point to a navigable path — better recycling, expanded public transit, and smaller vehicle design could dramatically reduce nickel demand — but the industry has yet to steer meaningfully toward it.
In the forests of Sulawesi, Indonesia, a quiet displacement is underway — one measured not in conflict but in cleared hectares and severed ancestral bonds. The nickel extracted from indigenous Tolaki lands flows invisibly through Chinese processors and battery manufacturers into the electric vehicles sold by the world's largest carmakers, binding the promise of a cleaner future to the destruction of one of its oldest. This investigation traces that chain from rainforest to assembly line, asking whether the green transition can justify the human and ecological costs it quietly exacts.
The nickel powering millions of electric vehicles sold by Volkswagen, Ford, Tesla, and others can be traced to a specific origin: primary rainforest being cleared on indigenous Tolaki lands in Sulawesi, Indonesia. An investigation into corporate disclosures and trade flows has connected ore from two mines — Cahaya and Hengjaya — through Indonesian smelters and Chinese processing plants to the assembly lines of at least eight major automotive companies.
Nickel is essential to EV battery technology, boosting energy density and extending vehicle range. Sulawesi holds the world's largest deposits, and successive Indonesian governments have weakened environmental protections to allow mining to expand. Satellite analysis shows the two concessions have driven widespread primary rainforest loss across Tolaki ancestral lands. Wadimula, a Tolaki elder living at the edge of the Cahaya concession, put it plainly: destroying the forest means destroying his people's life. Nickel mining accounts for an estimated two-thirds of all forest loss within Cahaya's boundaries since 2001, and more than half within Hengjaya's.
The supply chain is well-documented. Ore from Cahaya flows to a Huayou-operated smelter on Indonesia's eastern coast, refined into mixed hydroxide precipitate — the raw material for battery cathodes. Hundreds of millions of dollars' worth of this material shipped to Chinese manufacturing sites in 2024 and 2025. Huayou supplies CATL, the world's largest battery maker, and from there, cells and modules reach carmakers across Europe and North America. Trade data shows a Volkswagen facility in Braunschweig received a shipment of cell modules in October 2024.
Most carmakers declined to provide specifics when contacted. Volkswagen said it could not rule out these companies appearing in its supply chain. Ford said it was reviewing the allegations. General Motors and Stellantis acknowledged environmental and human rights risks in Indonesian nickel production, but none shared audit results.
The stakes are compounding. A study in Nature Communications found the carbon footprint of nickel from the worst mines may be up to 500 times greater than previously reported once tree loss is counted. Global nickel demand is projected to double by 2040. Yet experts argue this trajectory is not inevitable — improved recycling, public transit investment, and smaller vehicle design could dramatically reduce demand. The question is whether the industry will pursue those paths, or whether the Tolaki forests will continue to disappear in service of a greener future that does not yet account for what it costs.
The nickel that powers the batteries in millions of electric vehicles sold by Volkswagen, Ford, Tesla, and other major carmakers has a traceable origin point: primary rainforest in Sulawesi, Indonesia, being cleared on indigenous Tolaki lands. An investigation into corporate disclosures and trade flows from the past two years has connected ore extracted from two mines—Cahaya and Hengjaya—through a chain of Indonesian smelters, Chinese processing plants, and battery manufacturers to the assembly lines of at least eight leading automotive companies across North America and Europe.
The metal itself is essential to modern EV technology. Nickel boosts the energy density of battery cathodes and extends vehicle range, making it one of the most sought-after materials in the shift away from fossil fuels. But that demand has collided with geography: Sulawesi holds the world's largest nickel deposits, and successive Indonesian governments have weakened environmental protections to allow mining to expand. The two concessions at the center of this investigation—Cahaya spanning 21,000 hectares and Hengjaya nearby—sit in woodlands officially designated as production forest, meant for forestry rather than industrial extraction. Yet the mines operate there anyway, and satellite analysis shows they have driven widespread loss of primary rainforest across lands inhabited by the Tolaki people.
Wadimula, a Tolaki elder whose home sits at the edge of the Cahaya concession, described the relationship between his people and the forest in terms that frame what is being lost: "We used to ask the forest for protection in return for our offerings. Destroying it means destroying our own life." The scale of that destruction is measurable. Nickel mining may account for two-thirds of all forest loss recorded since 2001 within the Cahaya concession boundaries, and more than half within Hengjaya's, according to spatial analysis by geospatial firm The TreeMap. In 2024 alone, Sulawesi Cahaya Mineral, the company operating the Cahaya mine, cleared an additional 330 hectares of forest. That same year, the company delivered 11 million tonnes of limonite ore—nearly all its production—to a nickel smelter operated by Huayou, a Chinese processor, in an industrial complex on Indonesia's eastern coast. Deliveries climbed to nearly 12.5 million tonnes in 2025.
From there, the ore moves through a well-documented supply chain. The smelter refines limonite into mixed hydroxide precipitate, the primary raw material for battery cathodes. In 2024, $606 million worth of this processed material shipped from the Morowali plant to Chinese ports; another $470 million followed in 2025. The material traveled overland to Huayou cathode manufacturing sites near Shanghai and near the Vietnam border. Huayou confirmed in a 2024 regulatory filing that it supplies CATL, the world's largest battery maker. A downstream Huayou subsidiary has also confirmed supplying "large quantities" to CATL. From CATL and Huayou, batteries and cell modules reached carmakers across the Atlantic and Pacific. Volkswagen's facility in Braunschweig received a shipment in October 2024 of 24 tonnes of cell modules valued at approximately $390,000, according to trade platform data.
The carmakers identified as end-users of these supply chains include Volkswagen, Volvo, Ford, General Motors, Tesla, BMW, Stellantis, Hyundai, and Mercedes-Benz. When asked about their involvement, most declined to provide specifics. Volkswagen, which powered one-quarter of its vehicles with CATL systems in 2024, said it could not rule out that the companies may fall within its supply chain but cited contractual obligations preventing disclosure of supplier details. Ford said it was reviewing the allegations. General Motors acknowledged that nickel mining in Indonesia presents "significant environmental, human-rights and community-related risks." Stellantis noted awareness of "environmental and social challenges associated with nickel production in Indonesia, including risks related to deforestation, biodiversity loss and ecosystem degradation." None of the companies shared results of on-site audits.
The environmental cost extends beyond the visible forest loss. A study published in Nature Communications found that the carbon footprint of nickel from the worst mines may be up to 500 times greater than previously reported, when accounting for the loss of trees. Global demand for nickel is projected to double to 5.5 million tonnes by 2040, according to the International Energy Agency, with much of it mined in Indonesia and refined in China. Yet experts argue the mining boom need not accelerate at this pace. A 2023 report found that lithium demand in the US transport sector alone could be reduced by 18 to 66 percent through improved public transit, increased walking and cycling, and smaller vehicle purchases. Better recycling could reduce demand by as much as 92 percent. The question now is whether carmakers will pursue those alternatives, or whether the Tolaki forests will continue to disappear to feed an appetite for larger, heavier electric vehicles.
Notable Quotes
We used to ask the forest for protection in return for our offerings. Destroying it means destroying our own life.— Wadimula, Tolaki elder
We are aware that nickel mining in Indonesia presents significant environmental, human-rights and community-related risks.— General Motors
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