Once you've made it to the Central area, you will eventually be tasked with delivering to the Junk Dealer in the southeast area of the map. Once there, you will see chiralium contaminated cargo just sitting outside. Pick up some and head south to the crater lake.
Once there, equip the cargo to your right hand. Hold
and then hold
to swing/punch. At the top of the swing, release the button and the cargo should be tossed out into the lake.
Once the cargo sinks and is destroyed, the trophy will unlock.
Video credit to PowerPyx