Indonesia’s Nickel Boom Is Forcing Its Own Smelters to Shut Down
- Asian nation now controls more than half of refined supply
- Increase in production has battered the battery metal’s price
This article is for subscribers only.
Indonesia’s sprawling nickel industry is creaking under the weight of its own success, as a production surge drags down prices and a shortage of ore forces even the country’s own smelters to curb output.
The Southeast Asian nation’s metal boom over the past decade has convulsed the industry, catching many off-guard with its speed and scale. Cheap coal-based power and Chinese technology that makes the most of bountiful low-grade reserves have helped Indonesia to control more than half of the world’s nickel production — a win for Jakarta governments eager to boost manufacturing.