Expected ROI of nickel manganese cobalt battery project in Indonesia 2030

What is Indonesia doing about nickel refining?

Indonesia is not stopping at nickel refining. Its endgame is to develop a full-fledged EV battery supply chain and, eventually, an EV manufacturing ecosystem. To achieve this, the government has implemented policies to:

Will Indonesia's cobalt market catch up with the DRC?

Indonesia is the second-largest market by some margin and will quickly catch up with the DRC as a major growth driver. From 2022 to 2030, Indonesia has the potential to increase cobalt supply by 10 times, compared to the DRC’s output rising by two-thirds, and could account for 37% of the potential mined supply growth from 2022-30, the agency said.

Is Indonesia supplying half of global nickel needs?

The Energy Shift Institute (Energy Shift) is of the view that Indonesia’s share of global battery production capacity is far out of step with its dominance in supplying half of global nickel needs. This observation should not come as a surprise to industry insiders as nickel is only one among many determinants of battery and EV production.

What will Indonesia's cobalt market look like in 2030?

Benchmark forecasts 93% of Indonesia’s potential cobalt growth to 2030 will come from MHP, with the remainder from matte – an artificial nickel-iron sulphide containing 25%-45% nickel that has turned the traditional nickel market on its head.

How much cobalt does Indonesia produce in 2022?

It produced 9,500 tonnes in 2022. Despite not producing any mixed hydroxide precipitate (MHP) before 2021, the quick rollout of new high-pressure acid leach (HPAL) nickel production capacity in Indonesia has meant that cobalt in MHP is quickly becoming a crucial part of the global market.

Why did Indonesia ban nickel smelting & refining in 2020?

These batteries power leading EV brands like Tesla, BYD, and CATL, making nickel a sought-after commodity in the global clean energy transition. Recognizing this, the Indonesian government banned raw nickel ore exports in 2020, forcing foreign companies to invest in smelting and refining facilities within Indonesia.