EV Battery Supply Chains and Nickel Downstreaming in Indonesia

The transition of the global transportation sector toward low-carbon mobility has positioned nickel-rich lithium-ion battery chemistries as critical components for decarbonization [1], [5]. Indonesia has leveraged its vast resource base by implementing export restrictions on raw nickel ore to force domestic refining and capture downstream value in the emerging electric vehicle battery manufacturing sector [1], [2]. This industrial policy seeks to transform an extractive export model into an integrated supply chain cluster capable of delivering battery-grade cathode precursors [2], [5].

Despite ambitious policy objectives, the domestic processing landscape faces significant structural hurdles across technology deployment, environmental compliance, and infrastructure integration [1], [4]. The conversion of limonite ores requires capital-intensive hydrometallurgical processing such as High-Pressure Acid Leach, which introduces waste management and emissions challenges that could limit export acceptance in major global markets [5], [8]. Simultaneously, end-consumer vehicle adoption within domestic markets remains constrained by charging network availability, battery cost differentials, and uneven ecosystem maturity [3], [4].

This study examines the vertical integration of Indonesia's nickel downstreaming strategy and evaluates how domestic processing capacity aligns with global electric vehicle supply chain requirements [2], [5]. Utilizing secondary desk-research synthesis, comparative policy analysis, and industrial cluster mapping, the research evaluates the operational and regulatory mechanisms shaping local value capture [1], [3]. The findings deliver structured insights for industrial planners and policymakers to reconcile mineral policy with circular resource recovery and international manufacturing standards [4], [5].