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Indonesia is tightening control over its nickel industry amid falling demand for nickel in EVs, citing political and environmental concerns.
Indonesia is tightening state control over its nickel industry, the world’s largest, as global demand shifts toward iron-based EV batteries that require less nickel.
After banning raw ore exports in 2020, the country attracted major Chinese investment in smelting, making it the top global nickel supplier with about 60% of output by 2024.
However, efforts to build a domestic EV industry have faltered, with key investors like LG Energy Solution scaling back.
A 2025 crackdown seized over 4 million hectares of land and imposed $1.7 billion in fines, but critics say the move prioritizes political control over environmental protection.
Mining has caused over 370,000 hectares of forest loss since 2001 and significant emissions from coal-powered smelters, raising concerns about the sustainability of Indonesia’s resource-driven development model.
Indonesia está endureciendo el control sobre su industria del níquel en medio de la caída de la demanda de níquel en vehículos eléctricos, citando preocupaciones políticas y ambientales.