With the largest nickel reserves in the world and a ban on the export of nickel ore, Indonesia is positioning itself as a crucial player in the electric vehicle industry, with 21 million tonnes in proven nickel reserves, which is nearly a quarter of the world's reserves. In three years, Indonesia has signed over a dozen deals worth over $15 billion for battery and electric vehicle production with companies including Hyundai, LG, and Foxconn.
Now, the country is trying to convince Tesla, the world's most valuable automaker, to manufacture EVs or batteries in Indonesia. Indonesia's ban on nickel ore exports in 2020 encouraged companies to process and manufacture onshore, leading to processed nickel exports worth over $30 billion in 2022. The country is expected to account for half of the world's nickel production increase between 2021-2025 as demand for EVs increases. It doesnt stop there, Indonesia has additional goals to build an integrated supply chain for EV batteries by 2027 and increase nickel exports by 200 times.