Indonesia has the world’s largest nickel reserves and also as a nickel exporting country which controlled approximately 20 % world nickel exports. Having this large reserves and considering its economic opportunities, Indonesia will focus on exporting nickel products instead of nickel ore. In 2014 Indonesia banned exports of nickel ore and aim to process it within the country to increase the value of its nickel production.
Few years ago exports of nickel ore only generated revenue of $ 1 Billion. By concentrating in exporting nickel-based products, in 2021 Indonesia was able to increase the revenue to $ 20.9 Billion. In 2021 Indonesia produced 2.7 million metric tons which was amounting to 37% of the world’s total nickel production.
Nickel demand today is mostly for steel production. However product of batteries needed for the carbonization of transportation will serve as largest growth sector. According to Government Office, Minister of Energy and Mineral Resources, there will be 41 nickel smelters now being built in Indonesia at different stages.
Indonesia’s first plant to process nickel for use in batteries, and thereafter used in electric vehicles., was commissioned in May 2021 . Another 7 more projects will soon be built. The progress of these high-pressure acid leaching (HPAL) projects will be key to future battery-grade nickel supply.
Tsingshan Holding Group , GEM .Co, CATL, which are investors from China, and local companies PT Aneka Tambang Tbk, PT Vale Indonesia Tbk are among the first to take part in HPAL development projects in Indonesia.
Source:
Pefindo, CSIS, MEMR