In 2023, exports of refined nickel products reached USD 34.4 billion, according to the Ministry of Energy. Over the past decade, Indonesia’s nickel output has surged by an astonishing 1,143%, hitting 2.2 million tons in 2024. As a result, Jakarta now controls nearly 60% of global nickel production.
Nickel is a critical material in modern battery technology, essential for high-performance EV batteries. Demand is rising rapidly, with the global nickel market expanding by roughly 20% annually. Indonesia has responded not only by ramping up production but by investing heavily in infrastructure and industrial capacity. By mid-2024, the country had 44 nickel smelters in operation—up from just two in 2014, according to the Ministry of Industry. The Indonesian Mining Institute reports that 36 more facilities are in the planning stages as of early 2025.
This shift is no accident. The Indonesian government recognized the geopolitical importance of nickel early on. In 2020, President Joko Widodo imposed an export ban on unprocessed nickel, aiming to attract investment in domestic refining and downstream industries—particularly in electric mobility. China reacted swiftly. In recent years, Chinese investors have poured an estimated USD 65 billion into Indonesia. In June, battery giant CATL broke ground on a USD 6 billion integrated project that spans the entire value chain—from mining and refining to full battery production.
These efforts have turned Jakarta into a pivotal player in the global EV supply chain. Today, more than a third of the nickel used in EV batteries originates from Indonesian mines—a share that continues to grow. Chinese battery manufacturers in particular rely heavily on Indonesian nickel, which now powers millions of electric vehicles around the world. This central position gives Indonesia significant strategic leverage in an increasingly competitive geopolitical landscape.
But there are risks. Chinese firms currently control nearly 75% of Indonesia’s nickel refining capacity. This dominance could become a geopolitical flashpoint as Western governments push to diversify and secure independent battery supply chains. As tensions between China and the West escalate, pressure is mounting on Jakarta to align more clearly with either Beijing or Washington.
Yet Indonesia’s resource policy stands as a compelling example of how natural wealth can be transformed into both economic momentum and geopolitical influence. Whether the country can maintain its balance between rapid growth and strategic independence remains to be seen. But in the global nickel game, Indonesia has undeniably redrawn the map.
