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.
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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.
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