Indonesia's Nickel Production Faces Challenges Amid EV Battery Ambitions
Indonesia's nickel output is primarily directed towards stainless steel, with only 17% allocated for EV batteries by 2025. This reliance jeopardizes the country's goal to become a global leader in the EV battery sector as market trends shift toward nickel-free technologies.
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In 2025, 83% of Indonesia's nickel production is expected to support the stainless steel industry, while only 17% will be used for EV battery manufacturing. Research from the Centre for Research on Energy and Clean Air (Crea) indicates that the current structure of nickel usage undermines Indonesia's ambitions to be a key player in the EV market.
With rapid expansion of nickel smelters linked to a 31 gigawatt pipeline of coal power, the industry faces a risk of carbon lock-in. As nickel-free battery alternatives grow, particularly lithium iron phosphate technologies, Indonesia's reliance on traditional markets could hinder its transition to greener practices. Crea emphasizes that improving production technologies and aligning with renewable energy sources is essential for competitiveness and sustainability.
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