2023-10-16 04:51:08
Published on October 16, 2023
Automotive groups are fond of Indonesian nickel, the new El Dorado in the transition to electricity. But the deposits, located in forests rich in biodiversity, are a disaster for the environment. The explosion in demand for nickel has already led to deforestation the equivalent of New York City, according to a report published by the NGO Mighty Earth.
A third of forest losses have occurred since 2019, the start of the electric car boom and the explosion in demand for nickel.
On the red earth of the island of Halmahera, Indonesia, premises for the future Sonic Bay factory are already installed. In the heart of a lush forest, the site could produce nickel and cobalt salts, essential minerals for the manufacture of electric car batteries, as early as 2026 if the investment is properly validated. The French company Eramet in charge hopes to meet the needs of 1.5 million vehicles thanks to one of the largest deposits in the world that it already operates, Weda Bay Nickel.
This is only the beginning of massive extraction of nickel, nicknamed devil’s ore, in Indonesia. The country has a quarter of the world’s reserves according to the US Geological Survey. A treasure for the electrical needs of the ecological transition but also a serious threat, after the nightmare of palm oil, for forests rich in biodiversity, shelters of unique species in the world and precious carbon sinks.
The Mighty Earth association, which has just published a new study on the subject, estimates that Indonesia has already lost 76,301 hectares of forests in nickel mining concessions, the equivalent of the area of New York City. A third of the losses have occurred since 2019, the start of the electric car boom. Several of these dealerships are used to supply large automobile groups such as PSA, Tesla, Ford or Audi, listed by Mighty Earth. The calculated deforestation is a low range according to the association which does not count the clearings before the official transfer of concessions, which would double the total, nor the areas exploited illegally.
Eramet, the company with a mission that clears the way
Among the 25 concessions singled out by the association is Weda Bay Nickel, operated by Eramet and the Chinese group Tsingshan, majority shareholder. Since its commissioning, this concession has deforested more than 1,248 hectares, the equivalent of 1,700 football fields. However, 86% of the area covering 125,000 hectares, industrialized on 45,000 hectares, stores carbon at a high level according to the NGO High Carbon Stock Approach. Eramet, a company with a mission, claims to be committed to the ecological transition. It promotes responsible practices while continuing to explore new mining sites in Indonesia.
Eramet plans to replant as many areas as those cleared in Indonesia and with endemic species. The company also wishes to have the concession certified by the Initiative for Responsible Mining Assurance (Irma), which defines responsibility standards for the management of water, biodiversity and mining waste. Contacted by Novethic, she declared that a self-assessment of the Weda Bay site, also contested for its impacts on neighboring residents according to the Indonesian NGO AEER, will be carried out with a view to an external audit in 2025. For its part, Brazilian Vale, the mining group that has deforested the most in Indonesia, claims to Novethic that it replants more than twice the deforested areas in the country and fights against illegal deforestation in its concessions.
Several concessions contain areas with a high level of biodiversity according to the “Key Biodiversity Area” benchmark recognized by the IUCN, the equivalent of the IPCC on the subject of biodiversity. Mighty Earth cites in particular the Bintang Delaban Mineral concession, managed by the Chinese group Tsinghan. This presents a high level of biodiversity over 85% of the area and has already lost 2738 hectares of forest. The association also warns of several concessions which deforest near the coasts. This can deposit sediments harmful to marine life even though Indonesia is home to 30% of the world’s coral reefs.
“Making the energy transition credible”
Nickel extraction raises the thorny question of the environmental and social impacts of the energy transition. To “make the energy transition credible”, the director of the Energy & Climate center of the French Institute of International Relations (Ifri), Marc-Antoine Eyl-Mazzega, proposed in 2021 in the columns of Novethic to create an international minerals agency . “This agency could thus create ESG (environmental, societal and governance) standards leveled from the top,” underlined the expert.
For Mighty Earth, the aim is, without delay, to obtain better traceability of the nickel used in electric car batteries. “The goal is not to stop the production of electric vehicles, but to ensure that forests, ecosystems and local populations are protected while we make the ecological transition,” points out the association. For her, areas with a high level of biodiversity should be avoided. Especially since the demand is not going to dry up. The International Energy Agency estimates that by 2040, with the boom in electric cars and renewable energy, the world will consume 20 times more nickel.
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