Indonesia Tightens Nickel Control Amid EV Shift

Indonesia is increasing state control over its vast Nickel reserves, aiming to establish a domestic Electric vehicle industry. This involves cracking down on illegal exploitation, seizing mines, and levying fines. The move comes as global demand for Nickel is shifting, with many Electric vehicle manufacturers, particularly in China, adopting lithium iron phosphate (LFP) batteries that use less Nickel. While Indonesia seeks to leverage its dominant Nickel supply, the nationalization efforts risk deterring foreign investment and destabilizing the industry. The situation is further complicated by geopolitical competition between the United States and China for critical minerals, with Indonesia attempting to balance its relationships with both superpowers.