Posted on 29 May 2025
Indonesian investment institutions are joining forces with French miner Eramet to promote nickel downstream investment opportunities in the country, targeting the EV sector.
Eramet inked an MOU with Indonesia’s strategic investment management agency, Dantara Indonesia, and sovereign wealth fund, Indonesia Investment Authority (INA), during France’s President Emmanuel Macron’s visit to Jakarta on Wednesday.
“This partnership aims to develop a sustainable and integrated electric vehicle battery raw materials ecosystem in Indonesia,” they say in a joint statement seen by Kallanish. “The parties will conduct a preliminary assessment to identify the most suitable project to maximise the potential of the national EV ecosystem, while also preparing a roadmap for future collaboration.”
While specific details are yet to be disclosed, the parties believe Indonesia – the world’s largest nickel supplier – could become a global hub in the EV battery supply chain. Eramet, which has been producing nickel in the country since 2006, has already partnered with Indonesia’s Geological Agency to explore other critical minerals, including lithium.
Its nickel mining operations in Weda Bay primarily serve the steelmaking industry. Yet, Eramet’s ceo Paulo Castellari notes that the company has been investigating opportunities to participate in the nickel EV battery value chain. “We are ready to contribute through our sustainable mining expertise and long-term commitment to developing strategic industries in the country,” he adds.
According to Dandara Indonesia’s chief investment officer Pandu Sjahrir, the partnership will manage long-term financing to support investment development. It will “drive world-class nickel downstream investment… which is one of the key pillars in strengthening the competitiveness of the national industry,” the executive notes.
In the early 2020s, Indonesia banned exports of nickel ore to encourage domestic processing and add value to its resources. It attracted a large amount of investment in smelters and refineries, particularly from Chinese companies.
However, amid the ongoing oversupply in the market and a diversification push away from China, the country is facing stronger global scrutiny, particularly over its environmental credentials. Concerns mostly revolve around the reliance on a coal-powered grid; the use of high-pressure acid leaching (HPAL) technology, which can be a source of pollution if not properly managed; and the lack of regulation and monitoring, leading to environmental damage and social harm.
Source:Kallanish
