Fuelling the EV boom: The cost of Indonesia's nickel refineries

Ajouté : 2026-05-08

[00:00:00]On Indonesia's rural areas, turning into industrial hubs given the rapid expansion of nickel refineries. While there's profit to be made in a global boom in electric vehicles, there is still undeniable cost for those who are on the ground. CNN's Nimael Raja traveled to North Maluku as Indonesia's nickel powerhouse.

[00:00:22]Around the world, more people are buying electric vehicles or EVs to cut emissions and seize incentives.

[00:00:30]While some cities see cleaner air and quieter streets, the impact is stark in remote areas where nickel for EV batteries is mined.

[00:00:39]On Indonesia's nickel-rich island of Halmahera, green hills have been stripped bare.

[00:00:44]Once quiet fishing villages are now industrial towns surrounded by refineries and coal-fired power plants.

[00:01:10]Rising EV demand is big business for Indonesia, the world's largest nickel supplier.

[00:01:16]In the past decade, hundreds of mining permits have been issued covering a total concession area of nearly 10,000 square kilometers.

[00:01:25]Indonesia produces about 2.2 million tons of nickel a year. Most of it is exported to EV producing nations such as China and South Korea.

[00:01:37]And joining us for more on this story CNN's Nimael Raja. He joins us live from Jakarta. Nimael, you spoke to residents on the ground. We just heard from one of them. The access to clean water very difficult, dust everywhere during the dry season. What can they do to mitigate the worst of what's happening on the ground given this mining in Indonesia?

[00:01:59]Well, unfortunately, navigating the impact of mining has been very hard for them.

[00:02:04]You can imagine like 10 years ago where Weda Bay where I went to was filled with sleepy sleepy fishing villages and there wasn't much development. You can even find an ATM or a petrol station there.

[00:02:18]And that's just how remote and under developed the area was. And suddenly in 2016, mining companies started buying their lands, clearing their forests, building giant power plants and refineries. So, residents have to deal with fumes as you say, flood is worsening, rivers are contaminated, and a number of these rivers actually dried up completely making it hard for them to access fresh water. And this is happening at a rapid pace and some residents are really struggling to adapt to this situation that they're facing right now.

[00:02:57]There must be official support to try and balance the needs of business with the needs of local residents. And yet, as you say, many are struggling. So, that suggests these efforts might not be enough.

[00:03:14]Yes. So, one thing to note is that it takes a lot of energy to refine nickel in its raw form into one that is suited for car car batteries.

[00:03:25]Unfortunately, Indonesia decided that the cheapest way to provide this energy is through coal.

[00:03:31]Which is why millions and millions of tons of carbon dioxide is released into the air each year. Now, it was only until last year that Indonesia decided that they need to decarbonize the nickel industry and and produce a road map to reduce emissions by 81%. By the year 2045.

[00:03:56]Now, of course, you know, many questions, you know, not only why is the deadline so long? 2045, that's still 19 years away. But also why Indonesia has taken it so long to realize that they need to decarbonize when they could have set a strict environmental standards from the very beginning. So, many activists are wondering, are local people really benefiting from the nickel boom and the high demand for EVs? And here's my interview with Melky Nahar from the Mining Advocacy Network.

[00:04:57]So, really did they did the carbonization effort that the Indonesia is trying to do?

[00:05:05]The for the people of Weda Bay, they really need it now. They really need an intervention to be happening now. And with mining concessions getting bigger and bigger, more and more refineries are being built, the problem for them is going to get much, much worse.

[00:05:21]Oh, thank you for that. As years go by.

[00:05:23]Oh, thank you. It's CNN's Nimael Raja from Jakarta explaining the need, the urgent need to decarbonize Indonesia's booming nickel industry.