China is the home of the electric vehicle transition. Nearly one quarter of all new cars sold in China are now electric or plug in hybrid cars. And that makes China the largest EV market in the world, accounting for 53% of all EVs sold in 2021. As important as the world’s transition away from fossil fuels is, this transition isn’t without its problems. And the biggest challenge the world is facing is securing the metals needed.
Cobalt from the Congo, lithium from South America, and nickel from Indonesia, these are just some of the most notable examples of mining operations necessary for the world’s electric vehicle transition but that come with their own environmental concerns.
This article focuses on Indonesia’s nickel industry. Indonesia and Australia are tied for the world’s largest nickel reserves and for decades Indonesia had a thriving nickel export industry. However, President Widodo wants to position Indonesia right in the centre of the electric vehicle supply chain and earlier this month predicted that 60% of electric vehicle batteries will be made in Indonesia. To do this, Indonesia is transitioning from exporting nickel to refining nickel, which has increased environmental concerns.
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