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VW, Ford and Tesla batteries linked to deforestation of indigenous lands in Indonesia

By Eve

An analysis has traced nickel from the Cahaya and Hengjaya mines in Sulawesi, Indonesia, through smelters and Chinese processing plants run by Zhejiang Huayou Cobalt to CATL, the world's largest battery maker, and LG, both of which supply Volkswagen, Ford and Tesla. Satellite analysis shows the mines are linked to widespread deforestation of primary rainforest on lands inhabited by the Tolaki people. The findings highlight challenges in ensuring EV battery supply chains are free from environmental destruction, with nickel widely used in cathodes to boost energy density and vehicle range.

Why it matters

Procurement teams and CPOs face growing pressure to audit battery supply chains for environmental and social risks, as reputational and regulatory scrutiny intensifies around the sourcing of critical minerals like nickel. The findings may prompt carmakers and their suppliers to tighten due diligence and seek alternative sources to meet sustainability commitments.

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Original title
“Revealed: VW, Ford and Tesla batteries linked to destructive deforestation of indigenous lands”
Published
16 October 2026

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