China Invests Over $65 Billion in Indonesia's Nickel Industry Amid Environmental Concerns

A report by Climate Energy Finance reveals that China's investment in Indonesia's nickel sector exceeds $65 billion since the implementation of downstream policies. This constitutes more than half of China's total global investment of $120 billion aimed at securing critical mineral supplies for energy transition. Chinese companies like Tsingshan Holding Group and CATL are central to this investment, which focuses on not only extraction but also domestic processing industry development, job creation, and technology transfer.

Published Mar 20, 2026

China's investment in Indonesia's nickel industry has surpassed $65 billion since the downstream policy was enacted, according to Climate Energy Finance. This amount represents a significant portion of China's total investments, which have reached $120 billion since 2023 for securing critical minerals.

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The investment strategy includes not just extraction but also developing domestic processing industries, creating skilled jobs, and facilitating technology transfer. Key players like Tsingshan Holding Group, CATL, and Zhejiang Huayou Cobalt have been instrumental in this growth. The Morowali Industrial Park and Weda Bay Industrial Park exemplify China's commitment, contributing to Indonesia’s status as the world's largest nickel producer with 22% of global reserves.