Indonesia’s nickel mining industry is experiencing a boom, driven by the metal’s crucial role in electric vehicle batteries. With over 14 active mines, the country now supplies over 40% of global nickel demand, solidifying its position as the world’s top producer.

“Nickel is essential for the development of the electric vehicle sector, which will benefit the environment and the path toward a greener global economy, meeting climate change goals,” said Jason Sappor, Senior Analyst at S&P Global Commodity Insights.

This rapid growth is closely linked to Indonesia’s partnership with China, the world’s largest producer of electric vehicle batteries. Chinese investments have bolstered Indonesia’s mining capabilities, focusing on local nickel refining following a ban on raw nickel exports in 2022.

However, concerns about the environmental impact are mounting, with issues like water pollution and deforestation near mining sites demanding attention.

The surge in Indonesian nickel production has increased supply and lowered prices, impacting producers in Australia and Canada.