New Energy Batteries: Nickel is a core raw material in ternary lithium batteries (NCM/NCA). With the rapid growth of electric vehicles (EVs), global demand for high-nickel cathode materials continues to rise.
Stainless Steel Industry: Currently, around 70% of global nickel consumption is used in stainless steel production, which remains the primary demand driver. As the world’s largest stainless steel producer, China has a high dependency on Indonesian nickel ore.
2. Indonesia’s Policy Advantages
Indonesia holds the world’s largest nickel reserves and production, accounting for more than 22% of global reserves.
The government has implemented a nickel ore export ban encouraging domestic smelting and fostering the development of nickel pig iron (NPI), stainless steel, and new energy battery industries.
Significant investment by Chinese enterprises in smelting and battery plants has created a strong industrial cluster effect (notable examples include the IMIP and Weda Bay Industrial Parks).
3. Investment and Market Opportunities
New Energy Wave: With the rising penetration of electric vehicles worldwide, demand for nickel used in power batteries is projected to increase by 3–4 times by 2030 compared to 2020.
Industrial Clustering: Sulawesi and Maluku are developing a complete nickel industry chain. The strategic location of BMU in the heart of this region provides a significant geographical advantage.
Capital Inflows: Major companies from China (Tsingshan, Huayou), South Korea (LG), and Europe (BASF) have already invested in Indonesia, signaling strong and growing demand for nickel ore supply.
Nickel Industry Outlook in Indonesia | PT. Bumi Morowali Utama
