In brief
Indonesia announced the launch of a national downstream nickel sector, featuring three battery plants and a new Antam‑CATL joint venture. Nickel exports leap from 2017’s $3.3 billion to about $26 billion by August 2026, underscoring the government’s industrial policy aimed at creating domestic added value. The move is expected to strengthen the electric‑vehicle battery supply chain and support climate‑friendly transportation.
Jakarta, Nov. 2 – Indonesia declared that it has completed a fully integrated downstream nickel industry, establishing a domestic electric‑vehicle battery ecosystem that traverses the entire supply chain from mining, through refining, to finished battery cells. The milestone, unveiled by Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia at the 2026 Mineral and Coal Convention and Exhibition in Jakarta, marks the culmination of sustained industrial policy designed to keep nickel value‑added revenues within the country.
Bahlil highlighted the development as a key step toward reducing the environmental footprint of battery production. "Thank God, now Indonesia is one of the countries that has succeeded in building a downstream industry with an integrated car battery ecosystem from mining to battery cells," he said.
Indonesia’s battery portfolio now includes three major facilities. A plant in the Weda Bay Industrial Park in Central Halmahera, North Maluku, processes nickel laterite ore obtained from local mines. The Hyundai LG Indonesia (HLI) Green Power EV battery plant in Karawang, West Java, has been operational since July 2024 and produces battery cells for electric‑vehicle manufacturers. A third, Antam‑CATL joint‑venture facility in Karawang is scheduled for inauguration by President Prabowo Subianto later this month, adding new capacity for battery cell production and solid‑state battery research.
Export Growth Reflects Downstreaming Success
Indonesia’s nickel export value has surged as the domestic downstream industry has expanded. Official data shows the value rising from US$3.3 billion in 2017 to nearly US$40 billion by 2025, according to the ministry’s Directorate General of Minerals and Coal. As of August 2026, the same ministry recorded nickel exports reaching US$25.96 billion, a 26‑fold increase over 2017 levels.
Minister Bahlil linked the dramatic export growth to the country’s strategy of “keeping processing revenues domestic.” By producing battery cells locally, Indonesia not only secures a larger share of the global lithium‑ion supply chain but also reduces emissions associated with shipping unprocessed nickel to foreign battery manufacturers.
Environmental experts note that domestic battery production is a major lever for curbing the life‑cycle greenhouse‑gas emissions of electric vehicles. The integrated Indonesian system, from ore extraction to finished cells, allows tighter control over energy inputs, often sourced from hydropower and geothermal—renewable resources abundant in the archipelago. This contrasts with the heavier reliance on coal‑powered metallurgical processes in current global nickel supply chains.
The government’s downstreaming initiative extends beyond nickel. Plans to accelerate value chains for aluminum and other critical minerals are already underway, as part of Indonesia’s second‑phase national downstreaming programme. By building these ecosystems domestically, the country aims to foster long‑term sustainability and reduce dependence on imported finished products.
Indonesia’s integrated nickel sector positions it at the forefront of the global push toward carbon‑neutral transportation. With policy backing and expanding industrial capacity, the archipelago is set to become a pivotal node in the transformation of the electric‑vehicle battery industry, advancing both economic strength and environmental resilience.
