By Romel S. Gurky
Indonesia’s nickel sector, central to the global green economy and electric vehicle (EV) battery supply chains, is rapidly becoming a cornerstone of the country's sustainable growth, according to EBC Financial Group. The firm’s analysis highlights the country’s strategic role in the global energy transition, spurred by its substantial nickel reserves, which are crucial for the production of EV batteries.
As one of the world’s largest producers of nickel, Indonesia’s expanding role in the EV supply chain signals a key opportunity to align economic growth with environmental sustainability. With increasing global attention on cleaner energy, Indonesia is positioning itself as a vital player in the green energy market while addressing the environmental challenges associated with rapid industrialization.
EBC Financial Group noted that while Indonesia’s growth in the nickel sector presents substantial economic opportunities, the country also faces shared global responsibilities, such as reducing deforestation and addressing carbon intensity. The group emphasized that these challenges highlight the need for responsible resource management and a balanced approach to development.
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China has played a significant role in this transformation, contributing over US$15 billion in investments, and controlling approximately 75% of Indonesia’s nickel production capacity. This partnership has accelerated the country’s nickel refining and battery manufacturing sectors. However, EBC also pointed to the need for broader international partnerships to diversify investments and bring new technologies and standards to the industry.
With key players such as Hyundai, LG, and Foxconn entering the market, Indonesia’s nickel sector is well-positioned to continue its growth. The country’s approach to expanding its energy and industrial sectors while balancing environmental goals and fostering international cooperation is expected to be crucial in shaping the future of the global clean energy transition, the firm said.
Editing by Alexander Ginting
