European automakers flag nickel mining impacts in Weda Bay

A delegation representing major European automakers has raised concerns with local authorities in Indonesia’s North Maluku province over the social and environmental impacts of nickel mining operations in Weda Bay, according to local officials and program representatives.

The delegation, which included representatives from Mercedes-Benz, BMW and Volkswagen, met the Central Halmahera regent on Thursday to discuss public health issues, clean water shortages and potential risks to coastal ecosystems linked to mining and processing activities in the area.

The visit was conducted under the Nickel Impact Program Indonesia (NIPI), an initiative led by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in coordination with Indonesia’s National Development and Planning Agency (Bappenas).

Launched in October 2025, the program covers 10 villages surrounding the mining and industrial complex operated by PT Indonesia Weda Bay Industrial Park (IWIP), one of Indonesia’s largest nickel processing hubs.

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Central Halmahera Regent Ikram M. Sangadji reaffirmed the regional administration’s commitment to environmental protection and public health safeguards, according to a statement released after the meeting.

Indonesia is the world’s largest nickel producer and a key supplier of battery materials used in electric vehicles. European carmakers, facing stricter environmental and supply chain due diligence requirements at home, have been under increasing pressure to ensure responsible sourcing of raw materials.

Community groups have previously raised concerns about water quality and environmental degradation in Weda Bay, while mining operators say they comply with prevailing regulations.

The visit underscores growing international scrutiny of Indonesia’s nickel industry as global demand for electric vehicle batteries accelerates.

Editing by Reiner Simanjuntak