Indonesia's Nickel Takeover: A Double-Edged Sword in the Global EV Race

Indonesia is tightening state control over its large nickel supply to boost a domestic EV industry. However, the global shift to less nickel-dependent batteries and environmental costs could undermine its plans. Conflicts with China and the US further complicate Indonesia's stance in the critical minerals market.

Indonesia is asserting state control over its extensive nickel reserves, hoping to foster a local electric vehicle (EV) industry. Yet, as global battery manufacturers shift to less nickel-dependent designs, the nation's strategy appears precarious.

This move also comes amid international tensions, with both the United States and China eyeing Indonesia's critical minerals. Indonesia's tightening control could grant it leverage in trade negotiations, yet poses risks of destabilizing the sector.

Despite hopes of economic gains, environmental repercussions from mining expansion, including deforestation and pollution, have sparked criticism. Analysts remain divided on whether Indonesia will succeed in anchoring its economy on nickel amid these challenges.

(With inputs from agencies.)