Indonesia Approves $15bn Nickel Hub for EV Batteries
Massive nickel complex approved in Sulawesi.
Indonesia's Ministry of Investment approved the construction of a $15 billion nickel processing mega-hub on the island of Sulawesi, backed by a consortium of Chinese and South Korean investors led by Tsingshan Holding Group and LG Energy Solution. The facility will process 500,000 tonnes of nickel ore annually into battery-grade nickel sulfate for electric vehicle cathodes.
Indonesia controls 48% of the world's proven nickel reserves and has implemented an aggressive downstream industrialization strategy, banning the export of raw nickel ore to force foreign companies to invest in domestic processing capacity. The policy has attracted over $30 billion in committed investment since 2020, transforming the country from a raw commodity exporter into a critical node in the global EV battery supply chain.
The Jakarta Composite Index rose 1.6% on the announcement, with nickel mining and processing stocks surging 4-8%. Vale Indonesia and Aneka Tambang were among the top performers. Environmental groups raised concerns about deforestation and water pollution associated with nickel smelting, but the government said the project will meet international environmental standards and create 15,000 direct jobs in one of Indonesia's poorest provinces.
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