The EV Battery Boom: A Dream Turning Sour for Indonesian Workers?
Remember when electric vehicles (EVs) were going to save the planet and make some countries rich? For Indonesia, that dream came true, especially with nickel – a key ingredient for many EV batteries.
Indonesia quickly became the world's powerhouse for processing nickel, supplying a whopping 61% of the global refined nickel last year. This brought incredible wealth to places like Sulawesi, where the massive Indonesia Morowali Industrial Park (IMIP) became a hub of activity. Stories of people buying four-bedroom houses or spending big on weddings circulated, a stark contrast to the quiet farming lives many once led. Tens of thousands of young Indonesians flocked to IMIP, taking on jobs that promised high rewards, but also high risks.
But this boom came with a hidden cost. These jobs, while offering previously unimaginable incomes, are often dangerous and demanding. Workers are paid a low base wage, forcing them to rely on constant overtime to make ends meet. Imagine working 12-hour shifts, six or seven days a week, just to earn a decent living – often suffering chronic pain like Irfan, a dump-truck driver, or facing mental health struggles like Astrid, a former crane operator demoted after an accident. Workplace accidents are tragically common, with dozens killed and hundreds injured in recent years, including a furnace fire that claimed 13 lives. The environment, too, has paid a heavy price, with land once used for farming and fishing now impacted by mining and processing.
Now, the nickel party might be over. Carmakers like Tesla and BYD are increasingly switching to cheaper lithium iron phosphate (LFP) batteries, which don't use nickel. On top of that, Indonesia's own success led to an oversupply of nickel. The result? Nickel prices have plummeted from over $48,000 per tonne in early 2022 to around $15,000 today.
Factories are cutting back, and layoffs are hitting hard. For many, there's no going back to their old lives of farming or fishing, as the land has been impacted by mining. These workers, who risked their health for a better future, now face poverty and uncertainty.
The story of Indonesia's nickel boom is a stark reminder that behind every technological leap, there are real people making sacrifices. As the world shifts gears in the EV race, we must not forget the human cost of progress, especially for those whose dreams are now hanging by a thread.
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