Bandung, IndonesiaSentinel.com — Indonesia’s nickel would become a treasure sought by countries all over the world, particularly to meet the growing demand for raw materials used in electric vehicle (EV) batteries. This is driven by predictions of a significant global nickel deficit by 2040.
According to a presentation by MIND ID, the state-owned mining holding company, global nickel production is expected to reach only 2 million metric tons by 2040. In contrast, demand during the same period is forecast to rise to 4 million metric tons, resulting in a deficit of 2 million metric tons. Indonesia is positioned to become one of the key sources for the world’s nickel demands.
Dilo Seno Widagdo, Director of Portfolio and Business Development at MIND ID, stated that the company has developed a roadmap for managing Indonesia’s strategic and critical minerals, particularly those vital for boosting the national economy.
“We do not want to control all strategic minerals, only those that are important and support the EV battery ecosystem,” he said during the CNBC Indonesia MINDialogue event in Jakarta on Monday, June 24, 2024.
Indonesia is known for its rich natural resources, with nickel being a standout. The country holds the largest nickel reserves globally, contributing approximately 40% of worldwide nickel production. The Ministry of Energy and Mineral Resources (ESDM) reports that Indonesia’s total nickel reserves are estimated at 5.2 billion tons, comprising 3.5 billion tons of high-grade saprolite ore and 1.5 billion tons of low-grade limonite ore.
Indonesian Tea Turns Out to Be Popular in US and Russian Markets
The majority of Indonesia’s nickel reserves are located in Sulawesi, and the country is believed to possess around 17 billion tons of unexplored nickel resources outside designated green areas. Furthermore, ESDM data from 2020, detailed in the investment booklet “Indonesia Nickel Investment Opportunities,” indicates that Indonesia holds 72 million tons of nickel (Ni) reserves.
This represents 52% of the global nickel reserves, which stand at approximately 139.419 million tons Ni, based on data from the US Geological Survey (USGS) January 2020 and the Geological Agency (Badan Geologi) 2019.
Regarding nickel ore, the ESDM 2020 data reveals that Indonesia’s total nickel ore resources amount to 8.26 billion tons with grades between 1% and 2.5%. From these amounts, 4.33 billion tons are low-grade (below 1.7%) and 3.93 billion tons are high-grade (above 1.7%). Additionally, Indonesia has nickel ore reserves of 3.65 billion tons in the 1%-2.5% grade range, with 1.89 billion tons below 1.7% and 1.76 billion tons above 1.7%.
As the world increasingly shifts towards electric vehicles, Indonesia’s nickel reserves made the nation a key player in the global supply chain for EV batteries. The nation’s abundant resources and strategic management plans can make Indonesia a big contributor to the future of the electric vehicle industry.
(Raidi/Agung)
