Revealed: Destructive deforestation of indigenous lands linked to batteries for VW, Ford and Tesla

Nickel traced through supply chains

Trade data also showed a 24-tonne shipment of cell modules reaching Volkswagen’s Braunschweig facility in October 2024. The shipment was valued at about $390,000, according to Volza.

Forest loss in Tolaki territory

Satellite analysis found widespread primary rainforest loss in the nickel-rich lands inhabited by the Tolaki. The mines lie in areas designated as production forest, intended for forestry rather than industrial use.

Spatial analysis by geospatial firm The TreeMap suggests nickel mining may account for two-thirds of forest loss since 2001 within the Cahaya concession and more than half within Hengjaya. Auriga, an Indonesian nonprofit, said Sulawesi Cahaya Mineral contributed to clearing another 330 hectares in 2024.

Risks and company responses

The automakers identified as end-users of Huayou cathodes or recipients of CATL shipments include Volkswagen, Volvo, Ford, General Motors, Tesla, BMW, Stellantis and Hyundai. Mercedes-Benz was separately linked to Huayou.

Several companies said they did not buy nickel directly, assessed risks and required responsible sourcing standards. They declined to provide results of on-site audits. Volkswagen said it could not rule out that the companies were within its supply chain.

Ford said it was reviewing the allegations. Mercedes-Benz said it assessed reports of harm as part of risk-based due diligence, while Renault said it had identified a Sulawesi nickel mine as an indirect supplier and had engaged business partners to verify information.

Demand and forest protections

Indonesian governments have weakened safeguards and made exemptions for miners as demand rose. Environmental groups warn that growing demand for materials, including for SUVs, adds to pressure on forests.

A 2023 report said US transport-sector lithium demand could be 18% to 66% lower than a business-as-usual scenario through measures such as better public transport, walking and cycling, and smaller cars. Recycling could reduce demand by as much as 92%, the report found.