In brief
Indonesia completed an integrated nickel downstreaming chain that covers extraction, refining, and electric‑vehicle battery cell production, marking a major industrial policy milestone. The country now operates three large battery plants and has seen nickel export values jump from $3.3 billion in 2017 to nearly $26 billion in August 2026. The rollout includes a new stainless‑steel slab project and a joint venture with CATL slated for inauguration this month.
On the opening day of the 2026 Mineral and Coal Convention in Jakarta, Indonesia declared that it has created the world’s first fully integrated downstream nickel industry, a chain that stretches from raw ore extraction to the production of finished lithium‑ion battery cells for electric vehicles.
Industrial Milestone
Co‑ordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia, who also serves as Energy and Mineral Resources (ESDM) Minister, announced that the policy has brought together three major battery production facilities under one national strategy. The facilities include a plant in the Indonesia Weda Bay Industrial Park (IWIP) in Central Halmahera, a Hyundai LG Indonesia (HLI) Green Power battery plant in Karawang that started operations in July 2024, and a joint venture between state‑owned Antam and global battery maker CATL, scheduled to open later this month in Karawang.
“Thank God, now Indonesia is one of the countries that has succeeded in building a downstream industry with an integrated car battery ecosystem from mining to battery cells,” Bahlil said. "The creation of added value hinges on keeping processing revenues domestic," he added.
In technical terms, downstreaming refers to the transformation of raw materials into finished goods – in this case, turning nickel ore into finished battery cells. By integrating each step, Indonesia can reduce reliance on foreign processing and capture a larger share of the global EV battery supply chain.
Export Growth and Global Context
State data show that nickel export values have surged from just US$3.3 billion in 2017 to a record US$40 billion in 2025, and US$25.96 billion by August 2026 according to the Ministry’s Directorate General of Minerals and Coal. The growth is widely attributed to the new downstreaming policy, which has pulled processing activities back into the country. "If we do not build downstreaming and industrialization in our country, the creation of added value will not be optimal," the minister emphasized.
The integration also supports Indonesia’s goal of becoming a major player in the fast‑growing electric vehicle market. By controlling the entire supply chain, the country can respond more quickly to global demand and secure higher returns from downstream processes, such as electrolyte manufacturing and cell assembly.
In line with this push, Indonesia announced a US$320‑million stainless‑steel slab project aimed at supplying the downstream sector with high‑grade materials. The project has a planned annual capacity of 1.2 million tonnes and is expected to support the production of automotive components that are integral to electric‑vehicle batteries. According to the SMM Ferrous Metals Summit 2026, the slab facility will help meet local demand for high‑strength steel used in battery housings and vehicle frames.
These developments come as global demand for nickel is climbing. Government estimates say Indonesia’s nickel output — and by extension its capacity to supply downstream industries — has outpaced many other producers, positioning the archipelago as a key supplier for the EV sector. Industry experts see the integrated industry as a safeguard against export volatility and a lever to create economic added value domestically.
While the core of Indonesia’s downstreaming strategy centers on battery cells, the government is also actively developing similar chains for other critical minerals. Broadly, the national strategy is to identify a resource, build downstream facilities, and capture the economic benefit instead of exporting raw ore alone.
Given the scale of the investments, Indonesia is also preparing supportive policies, including streamlined permitting and tax incentives for joint ventures. The Antam‑CATL joint venture, for example, benefits from a favorable local content requirement that encourages the retention of advanced manufacturing processes.
The move to a domestic battery ecosystem follows figures that say the global market for EV batteries will reach several hundred billion dollars by 2030. For Indonesia, a downstream industry could yield tens of billions of dollars in new export revenue and thousands of jobs, according to the detailed forecasts prepared by the Energy and Mineral Resources Ministry.
Thus, Indonesia’s integrated nickel downstreaming industry represents a structural shift from a raw‑material exporter to a value‑added producer, a pivot that could reshape the country’s industrial prospects in the clean‑energy transition.
