Brave of Peter Carlsson to issue a warning about the...

Brave of Peter Carlsson to issue a warning about the environmental consequences as the rush in recent months to secure nickel supplies has begun, with Indonesia taking center stage. It seems that automakers are choosing Indonesia with grade 2 nickel laterite (clay mineral), purity 99%, which is used in stainless steel and not grade 1 sulphide ore nickel, purity 99.8%, which is used in electric car batteries. Tropical laterites are a type of soil with a fine grain size.

Indonesia's nickel sector is particularly carbon intensive and environmentally damaging. This creates a difficult challenge for EV manufacturers, who are under pressure to manage environmental, social and governance (ESG) issues in their supply chains, including carbon emissions.

The way nickel is processed, and in particular how Indonesian nickel resources are converted into materials suitable for electric car batteries, is energy intensive and environmentally damaging. On average, producing Class 1 nickel from Indonesia's laterite ore deposits emits two to six times more carbon dioxide emissions than when producing Class 1 nickel from sulphide deposits.

Most recently, environmental groups called on Tesla to end its investment plans in the country's nickel industry, citing concerns about deforestation, pollution of waterways and disruption of indigenous livelihoods as a result of nickel mining.

Sincerely,