Investigation traces nickel from cleared Indigenous forests in Indonesia to Volkswagen, Ford and Tesla battery supply chains
Satellite analysis ties two Sulawesi mines that feed a major Chinese cathode maker to widespread loss of primary rainforest on the lands of the Tolaki people.
Nickel from two mines blamed for clearing rainforest on Indigenous land on Indonesia's Sulawesi island may be ending up in batteries used by Volkswagen, Ford, Tesla and other major carmakers, according to an investigation published Friday by Stefano Valentino and Ajit Niranjan in The Guardian.
Reporters traced ore from the Cahaya and Hengjaya mines through a smelter in Morowali run by a subsidiary of Zhejiang Huayou Cobalt, a Chinese cathode maker that supplies Contemporary Amperex Technology Co. Limited (CATL), the world's largest battery producer. Trade data and corporate filings then linked Huayou and CATL products to carmakers in the United States and Europe, though filings do not show volumes that would tie specific shipments to specific cars.
The findings show how demand for electric vehicle minerals is pressing on forests where safeguards are weak. The International Energy Agency (IEA) expects global nickel demand to double by 2040.
Mining may account for two-thirds of the forest loss recorded since 2001 inside the Cahaya concession and more than half inside Hengjaya, according to analysis by the geospatial firm The TreeMap. The Cahaya operator, Sulawesi Cahaya Mineral, was sanctioned twice last year for clearing more than 450 hectares beyond its permitted area.
"Destroying it means destroying our own life," said Wadimula, a Tolaki elder whose home sits on the edge of the concession.
Volkswagen said it takes supply chain risks "very seriously" but could not disclose supplier details, and Ford said it was reviewing the allegations. CATL, Huayou, Sulawesi Cahaya Mineral and Tesla did not respond to The Guardian's requests for comment.
This brief is based on an article published Oct. 16, 2026, by Stefano Valentino and Ajit Niranjan in The Guardian. Read the original: https://www.theguardian.com/environment/2026/oct/16/vw-ford-tesla-batteries-deforestation-indigenous-lands
This article was produced with the assistance of AI tools and reviewed by an editor before publication.
