Rare Mineral From Indonesia Generates $6.8 Billion Annually But Is Destroying Ecosystems and Threatening Lives

Written by Rafaela Fabris

Published on 03/02/2025 at 22:19

A Indonésia extrai níquel principalmente em ilhas como Sulawesi e Halmahera, onde grandes empresas mineram o solo em busca do mineral. Depois, o níquel é refinado e vendido para a indústria global, sendo essencial para baterias de carros elétricos e tecnologia sustentável.

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Nickel Mining Is Devastating Forests, Contaminating Oceans, and Putting Communities at Risk as Global Demand Grows by Up to 500%

When we think of Indonesia, the first thing that comes to mind is its paradise beaches and lush forests. But the truth is that behind this postcard image lies a much less glamorous reality. The country is the world’s largest producer of nickel, a rare mineral essential for the battery and electric car industry. With estimated reserves of 21 million tons, Indonesia holds about 22% of the global nickel supply, an impressive figure.

The demand for this mineral has skyrocketed in recent years, driven by the race for more sustainable energy solutions. Electric cars, like those from Tesla, rely heavily on nickel to extend the range of lithium-ion batteries. Just in 2023, nickel exports generated US$ 6.8 billion for the Indonesian economy. But while the world celebrates progress in the energy transition, local communities are paying a very high price.

The Environmental Impact of Nickel Mining

Indonesia has about 21 million tons of nickel reserves, representing 22% of the global supply. With global demand growing, especially for electric car batteries, the country has the potential to dominate this market for decades but needs to balance mining and sustainability to avoid irreversible environmental impacts.

Nickel extraction is leaving deep marks in Indonesia, and they are not just economic. On islands like Sulawesi and Halmahera, where the largest reserves of the rare mineral are concentrated, mining is transforming natural landscapes into true industrial deserts.

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The Economic and Environmental Dilemma

Indonesia is at a crossroads. On one side, the country reaps the economic benefits of its strategic position in the global rare minerals market, boosting the economy and generating jobs. On the other side, it sees its nature being destroyed at an alarming pace.

To try to alleviate the situation, the government has announced measures to strengthen mine oversight. In November 2023, it promised reviews of operation licenses to ensure that companies follow more stringent environmental standards. But will this solve the problem? Environmentalists warn that illegal mining and lack of transparency in concessions continue to be giant obstacles.

And the pressure is only increasing on the rare mineral. It is estimated that the global demand for nickel could grow by 500% by 2050. This means more mining, more environmental degradation, and inevitably, more challenges for Indonesia.

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Rare Mineral From Indonesia Generates $6.8 Billion Annually But Is Destroying Ecosystems and Threatening Lives

Nickel Mining Is Devastating Forests, Contaminating Oceans, and Putting Communities at Risk as Global Demand Grows by Up to 500%

The Environmental Impact of Nickel Mining

The Economic and Environmental Dilemma

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Rare Mineral From Indonesia Generates $6.8 Billion Annually But Is Destroying Ecosystems and Threatening Lives

Nickel Mining Is Devastating Forests, Contaminating Oceans, and Putting Communities at Risk as Global Demand Grows by Up to 500%

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Cambodia has started digging a nearly 180-kilometer canal to connect the Mekong River directly to the sea and reduce its dependence on the ports of neighboring Vietnam.

China has put millions of electric cars on the roads, but now faces the side effect: more than 1 million tons of batteries are expected to go out of use per year by 2030, while the government expands tracking and combats illegal dismantling with environmental risks.

An Indonesian fisherman pulls a mysterious object from the sea and discovers that it is a Chinese underwater monitoring system, part of the so-called Underwater Great Wall that Beijing uses to track submarines and unmanned vehicles in strategic straits of the region.

Forget the Toyota Hilux: with a 2.0 turbo engine and 475 hp, the new BYD Shark Performance tows 3,500 kg, accelerates in 5.5 seconds, and addresses historical criticism, but loses load capacity and surprises even medium pickup truck owners.

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