Indonesia’s strategic value means that it can position itself as a one-stop source from mine to precursor chemicals.
Lacking sufficient domestic extraction and processing capacity for many critical minerals, the United States faces an urgent need to secure reliable battery supply chains. One promising pathway is through a deeper partnership with a nation that has quietly emerged as central to the future of battery technology: Indonesia.
The country holds the world’s largest nickel reserves and, in recent years, has become the largest producer of nickel worldwide, transforming from a raw nickel exporter into a major processing and manufacturing hub.
This shift was driven by industrial policy—rooted in resource nationalism—that prioritized strategic control over raw materials. In 2014, the government banned exports of unprocessed nickel ore, prompting foreign investors to establish smelters and midstream facilities on Indonesian soil.
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