Indonesia dominates global processed nickel market after aggressive export bans

Indonesia’s share of processed nickel grew dramatically, reaching 41% of worldwide output in 2023 compared with only 1% in 2014, according to mineral statistics. Production climbed from about 22,000 tonnes in 2014 to well over a million tonnes by 2023, after Jakarta imposed and later tightened bans on exporting raw nickel ore to force domestic smelting. Chinese investment played a key role, with Chinese companies owning most of the country’s refining facilities, especially the Morowali Industrial Park on Sulawesi.

The sector’s expansion has raised concerns over pollution, labor safety, and worker clashes. To reduce foreign ownership, the state miner Aneka Tambang announced multi-billion-dollar processing projects in East Halmahera, partnering with battery maker CATL and Zhejiang Huayou Cobalt. Recent trade talks with the United States have added uncertainty about future access to Indonesian nickel for battery supply chains.