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Tesla Urged to Halt Nickel Plans in Indonesia, Citing Environmental Concerns

Remember our article on toxic tailings? Well, a coalition of environmental organizations is calling on Tesla to reconsider its nickel investment plans in Indonesia, the world's leading producer of the mineral. The move comes as the electric vehicle (EV) industry faces increasing scrutiny regarding environmental, social, and governance (ESG) practices.

In an open letter addressed to CEO Elon Musk and shareholders, numerous groups urged the EV giant to abandon its direct investment in Indonesia's nickel industry and prohibit the use of nickel sourced and produced in the country in Tesla's vehicles.

"The nickel industry in Indonesia has a history of causing environmental damage, threatening democracy and equality, jeopardizing vulnerable communities, and violating laws," stated the letter, which was endorsed by Indonesian and US civil society organizations.

The letter raised concerns about the detrimental impact of nickel mining on forests, water pollution, and the lives of indigenous communities. It specifically highlighted the vulnerability of Wawonii Island in Indonesia's Southeast Sulawesi region, pointing out the coral reef damage caused by mining activities there.

Musk has consistently emphasized the importance of procuring more nickel as Tesla ramps up its production. During an earnings call two years ago, he urged nickel producers to increase mining efforts in an efficient and environmentally sensitive manner, stating that Tesla would be willing to enter into long-term contracts with those who meet these criteria.

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