Indonesia plays a central role in the global electric vehicle industry, holding the world’s largest nickel reserves—42.3% as of 2023. Nickel from Indonesia, especially intermediate products like Mixed Hydroxide Precipitate (MHP) and nickel matte, feeds the battery production chain through smelting in China and serves automakers such as Volkswagen, BMW, and Mercedes‑Benz in Germany and Europe.
However, this dominance is at odds with the ideal of environmentally friendly electric vehicles. In both upstream (mining) and midstream (refining) stages, nickel practices in Indonesia involve human rights violations and environmental damage. Cases of land dispossession without fair compensation, seizure of indigenous territory, and labor exploitation—long working hours, low wages, and unsafe working conditions—have occurred in many locations. Meanwhile, massive deforestation leads to erosion, water pollution, biodiversity loss, and reliance on coal-fired power plants fuels air pollution and public health risks.
These activities violate various national laws on human rights, agrarian matters, labor, and environmental protection and management. While the Indonesian government bears primary responsibility, these challenges also demand global accountability—particularly from all actors in the nickel battery supply chain, including electric vehicle manufacturers. Given rising nickel consumption, they are obligated to ensure the raw materials they use are ethically sourced and sustainable.
This research aims to map the actors in the electric vehicle nickel supply chain, and examine the relevance of German and European Union laws—including the German Supply Chain Due Diligence Act (SCDDA), the EU Corporate Sustainability Due Diligence Directive (CSDDD), and the EU Battery Regulation (BATT2)—in enforcing accountability for environmental and human rights violations. The findings are published to stimulate public dialogue, give a voice to affected communities, and enhance understanding of the contradictions between energy transition and social justice.
