Beneath Indonesia’s big EV dreams loom local costsBack
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Beneath Indonesia’s big EV dreams loom local costs

abatify summary
Ecosystem Impact

The expansion of nickel mining and processing for the EV supply chain in Indonesia poses severe threats to tropical biodiversity, risks significant deforestation in critical carbon sinks, and threatens local water security through potential industrial run-off and tailings mismanagement.

Systemic Reality

This dynamic highlights a growing tension in the global energy transition where the drive for decarbonization materials creates ESG-related financial risks and exposes gaps in national policy frameworks, potentially undermining the long-term sustainability and ethical legitimacy of the global EV market.

Two upcoming projects aim to push the country’s EV industry forward – but without changes to the law, experts fear they could perpetuate local harms.