Clean Energy’s Nickel Rush Is Heading Straight for some of Earth’s Richest Ecosystems – by University of Queensland (Phys.org – May 6, 2026)

Key Takeaways

• Half of 2050 nickel supply may come from top 10% biodiversity sites
• Up to 83% of future nickel could be sourced from laterite deposits
• Indonesian rainforest clearing accelerates to meet growing nickel demand
• Sustainable mining and recycling essential to protect carbon‑rich ecosystems

Pulse Analysis

Nickel sits at the crossroads of the global clean‑energy transition and traditional industrial demand. As electric‑vehicle adoption accelerates, battery manufacturers project a three‑fold increase in nickel consumption by 2035, while stainless‑steel production—essential for infrastructure and consumer goods—adds a steady baseline. This surge pushes producers to look beyond conventional sulfide ores toward laterite deposits, which are abundant but often buried beneath tropical rainforests. The market’s appetite for high‑purity Class 1 nickel, prized for battery cathodes, further narrows viable sources to regions with complex geology and limited existing infrastructure.

Laterite nickel deposits are typically found in Indonesia, the Philippines, and parts of West Africa—areas that also host some of the planet’s most biodiverse and carbon‑rich ecosystems. The study estimates that up to 83 % of future nickel could be extracted from these soils, meaning large‑scale forest clearing, soil disturbance, and increased carbon emissions are likely outcomes. In Indonesia, recent satellite data show a 12 % rise in deforestation linked to nickel mining permits over the past two years, threatening habitats of endangered species such as orangutans and Sumatran tigers. The loss of forest cover not only erodes biodiversity but also releases stored carbon, undermining the very climate benefits that nickel‑based batteries aim to deliver.

Policymakers, investors, and manufacturers now face a stark choice: prioritize rapid supply expansion or embed sustainability into the nickel value chain. Emerging ESG frameworks encourage traceability, stricter environmental impact assessments, and incentives for recycling high‑grade nickel scrap. Companies like Tesla and Vale are piloting closed‑loop recycling programs that could offset up to 20 % of future demand. Meanwhile, governments are considering stricter land‑use regulations and royalties tied to biodiversity offsets. Balancing the energy transition with ecosystem preservation will require coordinated action across mining, finance, and consumer sectors, ensuring that the push for clean technology does not come at the expense of the planet’s most vulnerable habitats.