Nickel monopoly: China strengthens its position in Indonesia

Chinese companies control about 75% of Indonesia's nickel processing capacity, raising questions about the impact on the supply chain and environmental risks. According to C4ADS, the total volume of nickel processing in the country reaches 8 million tons, distributed among 33 companies. At the same time, three quarters of the capacity for 2023 was managed by Chinese corporations.

Indonesia is committed to using the nickel industry to boost economic growth, but significant foreign influence may limit the country's ability to regulate the sector to its advantage. In addition, dependence on Chinese production puts automakers from the United States and Europe in a difficult position amid increasing trade restrictions. Nickel remains a key component of batteries for electric vehicles.

Earlier, Indonesian officials reported that Chinese companies are looking for partnerships with local and South Korean firms to reduce their shares in processing plants and increase the availability of products for the American market.