Nickel-to-Battery Push Lifts Mining Value Chain
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JAKARTA, Investortrust.id — Indonesia is accelerating a US$7 billion to US$8 billion integrated electric vehicle battery ecosystem to upgrade its mining sector from raw nickel exports to high-value battery manufacturing, a strategy expected to lift industrial margins and strengthen national energy security. The initiative integrates upstream mining, refining, and downstream battery production under state-led control.
The government coordinated MIND ID Group, Indonesia Battery Corporation, and a consortium led by Huayou to develop the end-to-end supply chain. The program aimed to consolidate mineral downstreaming while embedding technology transfer and domestic manufacturing capacity.
Energy and Mineral Resources Minister Bahlil Lahadalia said the ecosystem covered all industrial stages from nickel mining and refining to battery cell production. “Development includes the entire industrial chain, from nickel mining and refining facilities to battery manufacturing,” Bahlil said on Saturday, Feb 14, 2026 in Jakarta.
The value chain included smelters and high pressure acid leaching facilities, a technology used to process low-grade nickel at high temperature and pressure. The output would then feed precursor, cathode, and battery cell production for electric vehicles.
Indonesia had operated an initial 10 gigawatt battery facility since 2023 and planned to expand capacity by an additional 20 gigawatts. The expansion was designed to strengthen Indonesia’s position in the global battery and EV supply chain.
“We want this project to generate maximum value added for the nation. Downstreaming must become a lever for national economic growth and strengthen strategic industries,” Bahlil said.
Nickel feedstock would be supplied by PT Aneka Tambang Tbk or ANTM through cooperation with the consortium. The government targeted majority ownership of 60% to 70%, ensuring state control in line with constitutional mandates over natural resources.
Indonesia Battery Corporation president director Aditya Farhan Arif said the partnership would accelerate downstream integration and technology mastery. “We want to ensure that downstreaming truly delivers optimal value added for Indonesia,” Aditya said, referring to the continuation of the Titan project after earlier collaboration with LG.
Officials said the transformation from raw commodity exports to integrated manufacturing would raise mining margins, support regional economic growth, and enhance long-term industrial valuation. The integrated EV supply chain was also positioned as a pillar of Indonesia’s broader energy transition strategy.