The Hidden Costs of Indonesia's Nickel Boom: Layoffs and Safety Risks in the EV Battery Supply Chain

The residents of Sulawesi, Indonesia, once dreamed of stable careers as civil servants. However, the nickel boom has transformed their lives, offering high-risk, high-reward jobs in the electric vehicle (EV) battery supply chain. The Indonesia Morowali Industrial Park (IMIP), the world's largest nickel processing zone, employs tens of thousands, but the industry faces challenges as carmakers like BYD and Tesla switch to cheaper lithium ion phosphate batteries, reducing demand for nickel.

The Boom and Its Consequences

• IMIP employs about 86,000 Indonesians, but layoffs are looming due to dropping nickel prices and shifting industry demands.
• Workers face long hours, hazardous conditions, and rely on overtime to make ends meet, with some earning up to 13 million rupiah ($802) monthly.
• Workplace accidents are frequent, with 93 recorded accidents in eight years, leading to dozens of deaths.

Worker Profiles: Sacrifices and Struggles

1. Irfan, 30, Dump-Truck Driver
   • Works 12-hour shifts with no days off, earning up to 13 million rupiah ($802) with overtime.
   • Dreams of leaving to trade commodities but is saving for a house.

2. Astrid Laokko, 27, Former Hoist Crane Operator
   • Demoted to janitor after a workplace accident, now earns 8 million rupiah ($493) monthly.
   • Diagnosed with depression, she longs for a government job for better mental health.

3. Amira, 26, Chemical Lab Worker
   • Feels stuck in her role, with no promotion opportunities despite her diploma.
   • Earns 7 million rupiah ($430) monthly and has bought a house to rent out.

4. Ryan, 27, Furnace Operator
   • Works with molten nickel, witnessing colleagues suffer burns and respiratory issues.
   • Earns 7 million rupiah ($429) monthly, sending half to support his siblings' education.

5. Rikza, 27, Heavy Machinery Electrician
   • Left IMIP for another smelter, earning up to 11 million rupiah ($675) monthly.
   • Worries about layoffs and finding equally well-paying jobs outside the sector.

6. Iqbal, Quality Control Technician
   • Inspects lithium hydroxide, facing risks like skin burns and infertility.
   • Earns 6 million rupiah ($370) monthly and dreams of opening a café.

The Future of Nickel Workers

As the EV industry evolves, nickel workers face uncertainty. Layoffs are already happening, and the environmental damage from mining makes returning to traditional livelihoods impossible. The trade-offs between income and safety are stark, leaving many to wonder if the boom was worth the cost.