Indonesia's Nickel Industry Ramps Up Supply As Global Demand Grows

NORTH KONAWE, SOUTHEAST SULAWESI, INDONESIA - AUGUST 03: In this aerial view - Workers using excavators during an exploration for nickel ore in mining site on August 3, 2023 in North Konawe, Southeast Sulawesi, Indonesia. The global demand for the raw material nickel, a key component in batteries - especially those used in electric vehicles (EVs) - is growing rapidly. Estimates from the U.S. Geological Survey (USGS) showed that global nickel production grew 21% in 2022 alone. Indonesia holds the world's largest nickel reserves and leverages those reserves to attract investment in the battery supply chain, a report by the Center for Strategic and International Studies said. The batteries needed for electric vehicles will see demand for nickel outstrip demand from other industries, such as steel production, by 2030. Indonesia alone will account for roughly half of global nickel supply growth through to 2025. The success of the country's refining projects is a key determinant of both supply and nickel prices for the global market. As of 2020, Indonesia has 292 nickel mining permits, mostly in Sulawesi, as the island hosts most of the national nickel reserves, the same CSIS report said. Central Sulawesi Province is home to the Indonesia Morowali Industrial Park (IMIP), an integrated nickel hub for steel production, where a supply chain for battery production is planned. (Photo by Ulet Ifansasti/Getty Images)