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Nickel-rich Indonesia is looking to muscle in on Australian lithium and graphite producers as the Southeast Asian country continues expanding into downstream industries – especially any technology to make batteries.
Indonesia has built itself as a leading force in nickel globally in the 2020s, tripling its already significant output to 175.6 million tonnes last year.
It’s been so big that Indonesia held half the global market share in nickel in 2023.
Now the next step is for the country to lean into the entire nickel value chain, Meidy Lengkey, secretary-general of the Indonesia Nickel Mining Association (APNI), told HotCopper’s Sonia Madigan at the Critical Minerals and Energy Investment Conference this week.
Lengkey has come to Australia looking for end products involved in battery production, ranging from stainless steel to lithium – and most crucially, graphite.
“We’re asking how to make a battery,” Ms Lengkey explained. “[In] Indonesia, we don’t have lithium, we don’t have graphite, we only have nickel manganese and cobalt. So when we say how to make a battery cell, we’re looking at graphite.”
The interest has been spurred on by Indonesia’s new elected ministry, which is expected to follow a recent energy and mining policy that banned bauxite, cobalt, and tin exports to “draw more economic benefits” from its rich natural resources. That’s put lithium and in particular graphite on Indonesia’s radar.
Ms Lengkey agreed graphite producers in Australia should “for sure” be worried.
“We have a new ministry and we hope they’ll continue the program of the downstream minerals in Indonesia, not only for nickel, but other minerals also,” she continued.
“So, [we’re here to find out] what kind of interest [there is] to invite investors, find new technologies, and [to learn] how to make good mining practices, especially for ESG. You know, we – Indonesia – we’re new players and we’re looking for a professor to make something in Indonesia.”
One big question that will always hang over any Indonesian expansion is, of course, concerns about worker safety – a question mark Ms Lengkey was quick to wave away when it was raised by HotCopper’s Sonia Madigan on Monday.
“Like I said, we’re new players,” Ms Lengkey said. “We just started, right? We’re combining our situation with our conditions. We’re trying to [ask] what is the best situation in Indonesia regarding the ESG. You are not only talking about the processing of the upstream side and downstream side including the labour, including the safety, including the environment, but we’re asking about governance.
“This is talking about geopolitics. We have a new minister and we’re waiting for him to make something better for Indonesia and how to collaborate with agencies around the world.
“You have to check with Indonesia’s situation because we are totally different.”
Ms Lengkey also spoke on the future of nickel in Indonesia at Perth’s Critical Minerals and Energy Investment conference at 10am on Tuesday morning.
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