China Controls 75% of Indonesia’s Nickel Production
Beijing strengthens its grip on critical supply chains, raising concerns in the West
According to Reuters, Chinese companies control about 75% of Indonesia’s nickel processing capacity, raising concerns over industry independence and geopolitical risks.
Why Is This Important?
Nickel is a key component in electric vehicle (EV) battery production, and China’s dominance in the sector gives Beijing a major strategic advantage.
A report from the Washington-based think tank C4ADS states that in 2023, Indonesia processed 8 million metric tons of nickel, with three-quarters of smelting operations controlled by Chinese firms.
Experts warn that this dependence:
- Limits Indonesia’s control over its own mining industry.
- Puts the U.S. and EU at a disadvantage in the battery and EV market.
- Poses environmental risks, as China’s processing standards are less strict than those in Western nations.
How Is Indonesia Responding?
The Indonesian government is aware of the issue and is taking steps to reduce its reliance on Chinese investment.
- Chinese firms have started seeking partnerships with Indonesian and South Korean companies to lower their stake in smelters and make their products more accessible to the U.S. market.
- President Prabowo Subianto has created a special task force to increase domestic financing in the mining sector.
- Mining Minister Bahlil Lahadalia has stated that authorities want to change the perception that foreign companies reap the greatest benefits from Indonesia’s resources.
What’s Next?
China is likely to maintain its control over Indonesia’s nickel industry, but it will face increasing pressure from both Jakarta and the West.
The key question remains: Can Indonesia reclaim control over its strategic resources and reduce China’s dominance?
Do you have news that could become a sensation?
Or do you want to try yourself as an editor?
On altn.news , it's possible!
Share your materials, express your opinion, and test your skills as a journalist or editor.
It’s simple:
✅ Download the app:
✅ Register on the website.
✅ Create and publish your news.
Who knows, maybe your material will become the next big headline!
Start today on altn.news.
The editorial board is not responsible for the content and accuracy of material taken, sent or obtained from other sources. The publication of such materials is for informational purposes only and does not imply automatic endorsement or approval of their content.
