From Indonesia to Europe: Nickel Supply Chain Mapping Reveals the Hidden Costs of the Energy Transit

What’s Going Wrong in the Nickel Industry?

See the heat map below.

Key findings from the research include:

• 107 fatal accidents between 2019 and 2025
• 56-hour work weeks under hazardous conditions
• Labour issues: poor safety standards, low wages, excessive working hours, gender-based violence, and suppression of trade unions
• Community impacts: pollution, deforestation, water contamination, food insecurity, and forced displacement
• Cultural impacts: displacement of Indigenous communities and loss of traditional livelihoods

Economic Growth with a Dark Side 

Indonesia is now the world’s leading exporter of nickel products. In Central Sulawesi alone, 117 nickel companies are active. At the centre of this boom is the Indonesia Morowali Industrial Park (IMIP), a 5,500-hectare complex hosting over 50 companies. 

But this growth comes at a cost: 

• Poor working conditions
• Air pollution
• Forced evictions
• Systemic labour rights violations

Connected to Europe

The research traces nickel from four industrial zones in Morowali and North Morowali to end products in the EU. Through suppliers such as CATL, GEM, and POSCO, strong links were found to major car brands: 

Volvo, Tesla, Mercedes-Benz, Ford, and Volkswagen

Supply chains for solar and wind energy are less transparent. Companies in these sectors rarely disclose sourcing relationships, making accountability difficult. 

Another zone, the Indonesia Huabao Industrial Park (IHIP), is still under development but already shows potential links to Europe via Thyssenkrupp Materials, a supplier to BMW, Stellantis, and Toyota. 

Working Together for Fair Impact 

CNV Internationaal is committed to facilitating dialogue between workers, companies, civil society organisations, and governments. Together, we aim to build a nickel sector that not only powers Europe’s green future but also uplifts the communities at the start of the supply chain.

This supply chain mapping was published under the Netherlands’ Renewable Energy Agreement, with support from the Netherlands Enterprise Agency (RVO). The Agreement brings together solar and wind energy companies, industry associations, the Dutch government, knowledge institutions, NGOs, and trade unions to jointly improve sustainability in international value chains.