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Highlights
- Indonesia eyes Australian lithium and graphite industries.
- Focus on expanding downstream battery production.
- Concerns rise for Australian graphite producers.
Nickel-rich Indonesia is setting its sights on Australian lithium and graphite industries as it continues to strengthen its position in the global battery production landscape. As the Southeast Asian nation rapidly develops its downstream industries, it seeks to expand beyond nickel and into the full range of materials necessary for battery production, including graphite and lithium.
Indonesia has become a global powerhouse in nickel, tripling its output in recent years and holding half of the global market share by 2023. Now, the next step for the country is to capture more value from the entire nickel value chain. Speaking at the Critical Minerals and Energy Investment Conference in Perth, Meidy Lengkey, secretary-general of the Indonesia Nickel Mining Association (APNI), expressed the country’s growing interest in expanding its battery production capabilities.
Lengkey shared that Indonesia is eager to understand battery-making technologies and materials, particularly focusing on graphite, which is essential for battery cells. While Indonesia boasts an abundance of nickel, manganese, and cobalt, it lacks domestic lithium and graphite production. This has led to increased interest in Australia’s graphite producers, such as Syrah Resources (SYR) and Renascor Resources (RNU), who could feel the impact of Indonesia’s growing ambitions.
Indonesia’s recent energy and mining policies, which banned the export of raw materials like bauxite and tin, are part of the government's broader strategy to retain economic benefits from its natural resources. This policy has placed Australian lithium and graphite producers in the spotlight as Indonesia aims to build its expertise in battery manufacturing.
Indonesia's plans also extend beyond simply sourcing materials. The country is looking for new technologies and collaborations to improve mining practices, particularly with a focus on environmental, social, and governance (ESG) standards. Lengkey acknowledged that Indonesia is a relatively new player in this space and expressed the country's openness to learning and adopting better practices.
As Indonesia continues its push into battery materials, Australian companies will need to remain aware of the growing competition and potential challenges that may arise from this evolving landscape.
