Indonesia bets on nickel levy to break its China habit
Why it matters: Indonesia's new nickel levy will impact global EV battery supply chains and potentially shift manufacturing investments.
- Indonesia launched a sweeping nickel downstreaming policy in 2020 and is now preparing an additional export levy on processed nickel products.
- The Indonesian government has successfully halted raw ore exports and is now focusing on higher-value processed goods.
- The new levy is designed to break Indonesia's 'China habit' and foster a more independent, integrated domestic nickel industry, particularly for EV batteries.
Indonesia is escalating its 2020 nickel downstreaming policy by preparing an additional export levy on processed nickel products, aiming to move beyond raw ore export bans and reduce its reliance on China. This assertive move seeks to capture more value from its vast nickel reserves and develop a domestic EV battery industry.
