Nickel for your thoughts

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Hey there,

When it comes to protecting the climate, do the ends justify the means?

In some circles, it’s still up for debate whether electric vehicles can in fact drive the planet toward a greener future. But putting that aside, getting hold of the very resources that power EVs throws up its own set of conundrums.

Mining the nickel needed for EVs, for example, comes with environmental and geopolitical baggage, as this month’s Deep Read explores.

Indonesia and Southeast Asia as a whole have huge roles to play in the global energy transition. But as demand for these critical metals soars, so do the unintended consequences as environmental trade-offs, geopolitical tensions, and supply chain risks complicate the path to a greener future.

— Peter

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THE BIG STORY

Malaysia’s thirst for AI data centers could leave it high and dry

Malaysia’s data center industry is booming as demand for AI cloud computing surges. Tech giants have flocked to the country, investing tens of billions to build new facilities.

But these data centers require massive amounts of clean water to cool their servers, and experts warn that unchecked growth could push the country toward a water crisis. These facilities also need vast amounts of power, which could help dirty energy stage a comeback, according to investors.

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DEEP READ

‘The Opec of nickel’: Indonesia’s control of a critical metal

Nickel is crucial to energy transition, thanks to its use in batteries for EVs. And where do you find the world’s largest reserves of this metal? Indonesia, which accounted for 61% of the world’s refined nickel supply in 2024.

However, the nickel boom is not without challenges, including environmental concerns arising from mining-related sustainability issues. In addition, China’s heavy influence in the industry makes some Western firms wary of supply chain risks and geopolitical tensions, potentially pushing them to seek alternative sources.

For now, though, Indonesia looks set to be the dominant player in the nickel market for years to come. Consequently, how it chooses to wield its influence will greatly dictate how the EV industry develops.

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TRENDING NEWS

Also check out Tech in Asia’s coverage of Asia’s ecommerce scene here.

1️⃣ Asia Pacific falling behind on sustainable development and climate targets

The United Nations has warned that Asia Pacific is falling behind on its sustainable development and climate targets. Of particular concern is climate action, with the region seeing continued greenhouse gas emissions.

Why it matters:

Lagging on these targets makes Asia Pacific vulnerable to increased disasters, putting the region’s long-term stability at risk. More investment in climate tech and green power must be part of the solution.

2️⃣ The best time to stop a battery fire? Before it starts

As the EV industry grows, lithium-ion batteries are becoming more common. But that popularity comes with safety issues: When these batteries catch fire, they are notoriously difficult to extinguish. The best way to put them out is to prevent them from happening in the first place, according to this MIT Technology Review article.

Why it matters:

As more EVs get on roads across the world, these dangerous fires could become more of a concern – not just for consumers but for all kinds of companies involved in the sector.

3️⃣ Gen Alpha embraces alternative proteins – but will kids actually eat them?

A new study by Singapore’s state-backed Agency for Science, Technology and Research has found that Gen Alpha – people born between 2010 and the end of 2024 – sees alternative proteins as the future. However, their willingness to eat such novel food depends on taste, familiarity, and clear labeling.

Why it matters:

Gen Alpha is expected to be the largest generation the world has ever seen, and its spending power is estimated to hit US$12 trillion by the end of this decade. It stands to reason that if alternative proteins are to take off, this is the generation that must be won over.

4️⃣ ChatGPT may not be as power-hungry as once assumed

OpenAI’s ChatGPT may be consuming a lot less energy than previously thought, according to new analysis from Epoch AI, a nonprofit research institute. Based on commonly cited statistics, each query takes up 3 watt-hours of power, but Epoch AI found that it needs around 0.3 watt-hours instead.

Why it matters:

Generative AI chatbots are here to stay. I’m sure everyone reading this knows a few folks who use them constantly throughout the day, for everything from cooking recipes to relationship advice. If those endless queries aren’t eating up as much dirty (and clean) energy as once thought, that’s a bonus for the planet.

5️⃣ Troubled e-truck maker Nikola files for bankruptcy
Once valued at US$30 billion, hydrogen electric trucking startup Nikola Corp. has filed for bankruptcy. The firm was hit by a series of scandals involving its founder and former CEO, Trevor Milton.

Why it matters:

Remember how Nikola admitted in 2020 that a marketing video featuring one of its trucks moving via its own power was faked? It’s a reminder to look past hype: No matter how much we want the tech to succeed for the sake of the planet, it’s far more important that it actually works.

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STARTUP WATCH

1️⃣ Indonesian greentech startup Noovoleum raises $3m in funding

Rigel Capital has led a US$3 million investment round in Noovoleum, an Indonesia-based startup that taps tech to improve the recycling of used cooking oil.

2️⃣ Indian cleantech startup secures $2m pre-seed funding

The Energy Company, a Bengaluru-based cleantech startup, has scored US$2 million on pre-seed funding. The firm plans to develop an EV battery intelligence platform and a fast-charging battery for electric two-wheelers and e-rickshaws.

3️⃣ Wavemaker Impact launches Zentide with $525k investment

The climate tech-focused venture builder has invested US$525,000 in Zentide, an Indonesia-based startup that converts seaweed into sustainable biostimulants and biofertilizers.

4️⃣ Solar financing firm Credit Fair secures $5m green debt

Credit Fair, an India-based startup that bankrolls solar power installations, has scored US$5 million in debt financing from Symbiotics Investments.

5️⃣Indian EV financing startup Vidyut bags $2.5m

Vidyut has secured US$2.5 million from Flourish Ventures to expand its battery-as-a-service offerings. The startup works with major auto manufacturers like Tata Motors, Mahindra, and MG Motor India.

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See you next month!

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