Why Non-Profits Are Urging Elon Musk Not To Invest In Indonesia's Nickel Industry

Why Non-Profits Are Urging Elon Musk Not To Invest In Indonesia's Nickel Industry

Multiple non-governmental organizations (NGOs) have reportedly sent an open letter to Tesla Inc TSLA CEO Elon Musk, asking him not to invest in Indonesia's nickel industry owing to environmental concerns.

What Happened: The letter from the NGOs, which include Wahana Lingkungan Hidup Indonesia (WALHI) and Friends of the Earth United States, comes in the wake of a meeting between Indonesian President Joko Widodo and Musk in May to discuss potential investments, according to a report by Reuters.

Also Read: Oil Gains As Russia Leaves Europe Gasping For Natural Gas

Concerns: President Widodo is looking forward to building a nickel-based EV industry at home given the fact that Indonesia has the world’s largest nickel reserves. Environmentalists are worried the process would comprise disposing-off mining waste into the ocean.

Recommendations: The NGOs recommended Tesla should terminate any potential direct investment plan in the nickel industry in Indonesia and should stop nickel sourced and produced in the country in every business line.

What Is Tesla Saying: Tesla did not reportedly comment on the issue. However, in 2020, Musk urged the mining industry to increase nickel production "in an environmentally sensitive way," according to Reuters.

Nickel’s Uses: Nickel is used to improve battery storage life and the commodity is expected to see a surge in demand given that governments and businesses are looking forward to cutting down fossil fuel-run vehicles.

Posted In: electric vehiclesElon MuskEurasiaEVsIndonesiaJoko WidodoAsiaNewsCommoditiesMarkets