(San Francisco, June 26, 2025) – On his June 29 visit to inaugurate a new EV battery mega-project, President Prabowo Subianto should announce his government’s commitment to hold the project and other nickel-related projects to international human rights, environment, and greenhouse gas emissions standards, Climate Rights International said today.

The East Halmahera, North Maluku, mega-project, estimated at US$6-7 billion, is backed by Chinese firms Zhejiang Huayou Cobalt and CATL, alongside Indonesian state-owned enterprise PT Antam. The complex will include a smelter, high-pressure acid leach (HPAL) facility, cathode factory, and 20-gigawatt battery cell plant. It is a central part of Indonesia’s broader effort to position itself as a global leader in EV production.

“Nickel and other mega-projects are often launched under the banner of green development but leave behind a trail of social and environmental harm,” said Brad Adams, Executive Director at Climate Rights International. “Communities are repressed, forests are cleared, and pollution goes unaddressed with impunity. This is a chance for the Prabowo government to show that it has learned from those failures.”

As a flagship project, the mega-project presents serious risks that have become common in the Indonesian nickel industry. In its 2024 report Nickel Unearthed, CRI documented widespread abuses tied to the country’s fast-expanding nickel sector, particularly at the Indonesia Weda Bay Industrial Park (IWIP) and nearby nickel mines in Halmahera, roughly 50 kilometers from the new battery complex. Communities reported polluted water sources, declining health, land grabbing, harassment from police and military personnel, and destruction of traditional livelihoods. Further research into these issues was published this month in a new report, Ongoing Harms, Limited Accountability, which found that many of those harms continue, with little progress on enforcement or remediation.

Climate Rights International called on the government to require companies to undertake independent environmental assessments and address any gaps, avoid harmful air and water pollution, and ensure meaningful community consultation. Free, Prior, and Informed Consent must be obtained from local Indigenous communities.

The project must avoid replicating IWIP’s reliance on captive coal power plants, which have led to major greenhouse gas emissions that undermine the environmental integrity of supposedly green industrial development.

“The world is rightly focused on accelerating the clean energy transition,” said Adams. “But a just transition means centering justice, not just technology or investment. We cannot replace one form of harm with another and call it progress.”

The urgency of getting the energy transition right is growing. Indonesia possesses the world’s largest nickel reserves. Companies worldwide, especially automakers, are racing to secure access to nickel and other battery materials.

CATL supplies nickel to major car companies including Ford, Toyota, Hyundai, BMW, and Mercedes-Benz. Climate Rights International has repeatedly called on EV companies such as Tesla and Volkswagen to ensure compliance with environmental and human rights standards throughout their supply chains and to avoid sourcing materials linked to abuse.

The Indonesian government’s recent decision to cancel four nickel mining permits in Raja Ampat, one of Indonesia’s most ecologically rich regions, was a positive step by the government, Climate Rights International said. Officials cited the importance of preserving marine life, tourism, and conservation.

In addition to its proximity to Indigenous Buli and other local communities, the new mega-project lies near territories inhabited by the voluntarily isolated O’Hongana Manyawa people. While this population may be small in number, the risks posed by nearby industrial development, including deforestation and displacement, are enormous. International law protects the rights of uncontacted people to remain undisturbed, and any project that violates those principles breaches international human rights standards.

These environmental and human rights risks are compounded by a recent crackdown on dissent. Just last month, authorities in Halmahera charged eleven farmers from the East Halmahera village Maba Sangaji with criminal offenses after they protested the loss of their land to nickel mining. The arrests are the latest in a troubling pattern of intimidation and threats against environmental defenders who speak out against the nickel industry.

“A just transition requires not only environmental protections, but also respect for civil liberties, including the rights of farmers, Indigenous Peoples, and environmental defenders to live and organize without fear,” Adams said. “CATL, Huayou Cobalt, PT Antam, and any other companies involved with the new East Halmahera EV battery complex must commit to respecting the rights of local communities and the environment before breaking ground.”