Inside Indonesia’s nickel boom

ABC NEWS (Australia)

As sales for electric vehicles rise manufacturers are looking to shore up supplies of critical minerals needed for batteries. Indonesia is the world's biggest nickel producer and hoping to become a world leader in refining the metal for EVs. But while the boom is netting billions of dollars for the economy questions remain over its environmental cost.

Transcript

00:00 The small fishing village of Kurisa in central Sulawesi is home to the Bajo people, known

00:07 for being skilled fishermen. But the sea here has changed.

00:21 Since this company has been here, the water is hotter. We can't find any fish to catch.

00:29 Along with polluted water, residents here are also finding what they say is coal dust

00:35 inside their homes.

00:42 We used to eat fish, so it's very hard for sea people like me to eat noodles.

00:54 Economists say coal plants powering a nearby sprawling multi-billion dollar nickel industrial

01:00 park are to blame. Funded by Chinese investments, the park was

01:04 originally built to refine nickel for stainless steel.

01:10 But recently, two plants here have begun purifying nickel into a product destined for electric

01:16 vehicle batteries.

01:21 The International Energy Agency predicts EVs and battery storage are set to take over from

01:28 stainless steel as the largest user of nickel by 2040.

01:35 Here in Indonesia, environmental groups warn the nickel boom is fueling pollution and deforestation.

01:42 The biggest Australian investor inside Indonesia, Nickel Industries, is building its own refining

01:50 plant. Its chief operating officer says the company

01:54 wants to do things differently through reforestation projects and investment in clean energy.

02:01 And there is some factual evidence out there that the environmental challenges haven't

02:06 been managed properly. We hope to turn that around.

02:11 Despite concerns, the Environment Ministry says the park's operators are complying with

02:17 environmental regulations. Thank God our friends in the park are good.

02:23 They've been following our suggestions. For those living here, it's not a simple

02:30 equation. The park is bringing with it thousands of jobs.

02:36 In general, the impact is good because it helps a lot of people, but environmentally

02:40 it needs to be re-evaluated. For example, the impact on the ocean.

02:47 The government here in Indonesia also wants people to buy more electric cars and motorcycles

02:54 with cities like Jakarta full of pollution. But like Australia, EVs are much more expensive.

03:01 Subsidies and tax incentives are reducing costs, and Indonesia aims to have 15 million

03:07 EVs on the roads by 2030 and to start manufacturing EV batteries next year.

03:14 But some experts aren't convinced of the country's plan to become a global EV battery and vehicle

03:21 hub. If you are someone who wants to buy an EV

03:24 because you want a smaller footprint for the environment, this larger footprint may negate

03:29 you from buying an EV from Indonesia Nickel. As EV sales gather pace in Australia, more

03:37 Indonesian nickel is expected to find its way into Australian cars.

03:42 They're getting cheaper too, but the hidden cost for some Indonesians is still too high.

03:48 [BLANK_AUDIO]

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