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

MOROWALI, CENTRAL SULAWESI, INDONESIA - AUGUST 02: Employees in traffic during the working shift change near Indonesia Morowali Industrial Park (IMIP), that consists of around 77,000 local workers and around 6,000 Chinese workers on August 2, 2023 in Morowali, Central 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)