Eramet Invests in Nickel Downstreaming in Indonesia, Could Lower EV Prices

KatadataOTO – The Coordinating Ministry for Economic Affairs, representing Indonesia, has held a bilateral meeting with Eramet, a company in the mining and downstream industry sector, particularly nickel.

It should be noted that Indonesia is the owner of the world's largest nickel reserves. Nickel downstreaming can help various brands that locally assemble electric vehicles in the country so that their products can be sold at competitive prices.

For your information, nickel downstreaming is the process of processing raw nickel into final products that can be traded, thus creating higher economic value.

Eramet has committed to the Indonesian government to support industrial downstreaming through investment in developing green manufacturing facilities to produce batteries for electric cars, specifically in Weda Bay, Central Halmahera.

Photo : Wuling

“To ensure this green industry commitment, the industrial location in question can later be placed close to hydropower sources to guarantee the use of environmentally friendly and sustainable energy,” said Airlangga Hartarto, Coordinating Minister for Economic Affairs of the Republic of Indonesia, in an official statement, quoted on Tuesday (4/3).

Following up on this cooperation opportunity, Eramet revealed plans for investment by partnering with local partners in the critical minerals sector and downstreaming investment opportunities with BPI Danantara (Daya Anagata Nusantara Investment Management Agency).

The Coordinating Minister for Economic Affairs, along with Christel Bories as CEO of Eramet, agreed on the need to develop a roadmap and production capacity, as a consideration for the government in supporting Eramet to develop the nickel ecosystem in the country.

“The partnership between Indonesia and Eramet has great potential to drive innovation, strengthen the nickel and electric vehicle battery industry, and provide long-term benefits for both parties,” emphasized Coordinating Minister Airlangga.

Impact of Nickel Downstreaming in Indonesia

Photo : Wuling

Economic observers believe the government needs to continue the nickel downstreaming policy for industry players who use NMC batteries. Thus, manufacturers can develop electric vehicle lines utilizing domestic nickel.

Nickel downstreaming helps realize the government's vision of making Indonesia a battery supplier in the EV industry, as well as helping to reduce the price of electric cars that use NMC batteries.

“So, the nickel downstreaming that exists in Indonesia must be continued under the current conditions,” said Josua Pardede, Chief Economist of Permata Bank, when met in Jakarta some time ago.