Indonesia's Extensive Metal Expansion Leads to Deforestation for Batteries

In the heart of Indonesia's Halmahera Island, Librek Loha's journey to his forest farm is marred by distressing sights. "Aduuuuh," he exclaims, noticing yet another landslide, a frequent occurrence now.
The once lush landscape around Loha's cacao, nutmeg, and pineapple crops has transformed. Bulldozed forests and redirected rivers now surround his green oasis, starkly contrasting with dusty warehouses, coal mountains, and silt-laden waters.
This area in Weda Bay has become a global hub for nickel production, with blazing smelters and coal-fired power plants running incessantly to refine nickel ore for batteries and steel.
Indonesia's ambition to dominate global nickel supply has surged, marked by a significant increase in smelters—from just two a decade ago to 27 today, with 22 more planned. Last year, Indonesia supplied over half of the world's nickel ore, essential for electric vehicle batteries amid rising global demand.
However, the expansion of nickel-processing facilities has come at a staggering environmental cost. According to Auriga, deforestation rates around each smelter have doubled, exacerbated by the easy access to Indonesia's shallow nickel deposits once rainforests are cleared.
President Joko Widodo's policy shift a decade ago aimed to stop the raw sale of nickel deposits, opting instead to refine them domestically to boost employment and fetch higher prices. This policy sparked a massive nickel industry expansion, often co-locating smelters with EV battery factories and necessitating new coal-fired power plants to support industrial parks.
The environmental impact is profound. Forest destruction, river pollution, and damage to coastal ecosystems have escalated, while coal plant emissions add to the ecological toll. Villagers near industrial zones report visible changes in their surroundings, including disruptions to traditional livelihoods and dwindling natural resources.
While companies like PT Indonesia Weda Bay claim environmental responsibility, local communities continue to voice concerns over deteriorating living conditions and unmet promises of prosperity. Recent cancellations of major European nickel refinery projects may signal growing global apprehension toward Indonesia's nickel industry practices.
For villagers like Loha and his peers, the reality falls short of expectations. "Now our water is dirty and the fish and animals we hunt are gone," laments Abdullah Ambar, echoing sentiments of loss and disillusionment with the industrial development promised to bring prosperity.
Despite advancements in cleaner nickel production technologies, challenges persist in ensuring sustainable practices across Indonesia's expanding nickel sector.