Tesla’s Green Ambitions Tested on Pacific Islands – Nickel Story for EU

A tiny French territory suspended between Australia and Fiji is at the center of a key test over whether Western carmakers can sidestep China’s dominance over battery power and establish sustainable practices.

Tesla, through a partnership with a large nickel mine in New Caledonia, will directly source much of the key mineral, a major step in a broader effort by the company to take control of its supply chain and ensure that its cars are made in an environmentally and socially responsible fashion.

If accomplished, Tesla could lead the way in setting global standards for the electric vehicle revolution, in yet another convention-defying move by the company’s founder, Elon Musk. If the effort fails, it will serve as a cautionary tale of how difficult it is to achieve true sustainability.

Environment: New Caledonia is one of the world’s largest carbon emitters per capita. But if the Tesla model succeeds, carbon emissions would plummet, with renewable energies powering the nickel processing facility. But nickel has been at the heart of politics in New Caledonia for centuries, and Tesla will have to contend with this freighted history.

Sidestepping China: Most of the world’s nickel destined for electric vehicle batteries is processed in one place: China. Tesla has plans to produce batteries in Texas and Germany, which would help avoid an overreliance on China.

The shift: Some of Tesla’s cars run on batteries made with nickel processed by a Japanese firm that has sourced much of its nickel from places like the Philippines, Indonesia and Madagascar, where allegations of environmental and labor breaches are rife.