To meet EV demand, industry turns to technology long deemed hazardous

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Indonesia is the world’s top producer of nickel, but refining it for electric vehicle batteries poses a daunting environmental challenge. As demand surges, companies and governments are turning to a technology considered too perilous for local communities.

In 2020, the companies behind the project told the government they had a solution: They would pump the waste into the ocean. They ultimately backtracked in the face of public pressure. But it’s not clear that the on-land storage alternative they’ve offered instead is significantly safer.

where the frequency of earthquakes, heavy rainfall and landslides can make it especially treacherous to transport and store Indonesian officials say this new refining technology is needed to harness these nickel resources, which they hope will transform the country’s future as oil did for Saudi Arabia. At least 10 other projects using this same technology are already under development, according to the Indonesian Nickel Mining Association.

Officials have made it a priority to build a nickel supply chain, banning the export of raw nickel ore for processing abroad and approving the development of acid-based refining facilities as well as additional conventional nickel smelters at a rate unparalleled elsewhere. Despite official pledges to reduce carbon emissions, the government has approved the construction of coal-fired power plants specifically to support the processing of nickel for the EV industry.

 

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