Indonesia’s bold move to ban raw nickel exports in 2020 is reshaping the global electric vehicle (EV) industry. As the world’s largest nickel producer, Indonesia aims to boost its domestic processing sector and become a key player in the EV supply chain.

The policy has already drawn massive investments, particularly from China, with companies building smelters and processing plants across the country. This shift is creating jobs and driving economic growth, but it has also raised environmental and social concerns, including deforestation and community displacement.

By prioritizing domestic nickel processing, Indonesia is positioning itself as a critical hub for EV battery production. However, balancing economic ambitions with sustainability remains a challenge as the nation eyes a leading role in the green energy transition.