Clean energy industry needs more nickel, but the mines required to get it will cause environmental harm

Researchers at the University of Queensland (UQ) have found that 50% of future nickel mining will occur in the top 10% of land areas critical for biodiversity and carbon storage, posing a major threat to ecosystems. Their simulations, spanning 500 mine-by-mine projections to 2050, show that 78–83% of global nickel supply will come from laterite deposits—soft, weathered rock beneath tropical forests—primarily in Indonesia, the Philippines, and Papua New Guinea. These mines risk deforestation, carbon release, and sediment pollution flowing into marine hotspots like the Coral Triangle. Nickel demand is surging due to electric vehicle batteries and stainless steel production. Indonesia alone now supplies over half of global nickel, with projections indicating it could reach 74% by 2040. Cheaper Indonesian nickel has forced higher-cost mines in Australia and elsewhere to shut down, consolidating production in ecologically sensitive regions. The UQ study highlights that coastal mining—where 170 million tons of nickel lie within 31 miles of shorelines—will disproportionately harm marine ecosystems, as runoff carries heavy metals and sediment into reefs. Dr. Jayden Hyman, lead author of the study, modeled supply under climate pledges and conservation restrictions. Restricting mining to protect the top 10% of critical lands could reduce supply by 47 million tons, risking an 18% shortfall by 2050. Earlier research warned of biodiversity pressures from the clean energy transition, but nickel’s concentration in tropical forests and coastal zones amplifies the conflict between decarbonization and ecological protection. Indonesia’s largest nickel mine, opened in 2020 on Halmahera Island, sits in the top 1% of globally prioritized lands, directly upstream of high-biodiversity coastal waters. A separate analysis found that pollution impacts from nickel mining—such as sediment and metal runoff—are often underestimated. The study underscores the need for sustainable mining practices or alternative materials to avoid trade-offs between climate goals and environmental destruction. The findings challenge the assumption that nickel mining can scale without severe ecological consequences. With demand projected to rise, the study calls for urgent policy interventions to balance supply chains with conservation, particularly in regions like Southeast Asia where mining and marine ecosystems overlap.