Indonesia Battery Ecosystem Project Moves Forward With New Chinese Partnership

Aneka Tambang

The Indonesia battery ecosystem project is moving into a new phase with a fresh Chinese partnership. Antam, Industri Baterai Indonesia, and HYD Investment signed a framework agreement to develop an integrated battery ecosystem in Indonesia. This follows the exit of LG Energy Solution in 2025. As a result, the Indonesia battery ecosystem project remains alive and strategically important.

The change in partners matters because the project scale remains significant. Antam said the planned investment value is around $5-6 billion. A joint feasibility study will now define the next steps. Therefore, the Indonesia battery ecosystem project is shifting from partner transition into renewed execution planning.

HYD brings a strong industrial base to the table. The consortium includes Zhejiang Huayou Cobalt, EVE Energy, and Daaz Bara Lestari. That mix adds processing, battery, and investment capability. Consequently, the project gains a broader foundation across the battery value chain.

Indonesia Nickel Battery Chain Expands From Ore to Cells

The Indonesia nickel battery chain is central to this project’s logic. Planned facilities include an RKEF plant with 100,000 t/yr of nickel metal equivalent capacity. The project also includes an HPAL plant with 50,000 t/yr of nickel metal equivalent capacity. Therefore, upstream and midstream nickel conversion remain core pillars.

The downstream ambition is equally important. The project is expected to produce 105,000 t/yr of precursors and 30,000 t/yr of cathode materials. It also aims to build 20 GWh per year of nickel-based battery capacity. As a result, the Indonesia battery ecosystem project goes well beyond raw material processing.

Battery recycling also appears in the plan. The proposed recycling capacity is capped at 10,000 t/yr. That addition supports a more circular industrial model. Meanwhile, Antam will supply the nickel ore required for the project.

Antam Battery Project Reinforces Indonesia’s Downstream Strategy

The Antam battery project fits directly into Indonesia’s long-term downstream policy. Jakarta wants to build a local battery industry from mining to refining to final battery production. This new agreement supports that goal with another large integrated platform. Therefore, the project has national strategic value, not just commercial relevance.

This also shows Indonesia’s flexibility in partner management. LGES may have exited, but the broader industrial objective did not disappear. Instead, the project has been restructured around a new consortium. As a result, Indonesia continues pushing its battery ambitions despite partner turnover.

Antam’s role is becoming even more central. The company is involved in this project and also has a separate EV battery joint venture with CATL. That CATL-linked venture is expected to start operations by 2026. Consequently, Antam is emerging as one of the key anchors in Indonesia’s nickel battery chain.

The Metalnomist Commentary

This partnership matters because it shows Indonesia’s battery strategy is bigger than any one foreign partner. The country is still determined to convert nickel strength into downstream battery power. If execution improves, Indonesia could become one of the most integrated battery manufacturing hubs outside China.

Antam Nickel Ore Output Surges as Indonesia’s Domestic Demand Drives Growth

Antam Nickel

Antam nickel ore output surged in 2025 to its highest level in more than a decade. The state-controlled miner produced 16.1mn wet metric tonnes of nickel ore. That was up 62pc from the previous year. As a result, Antam nickel ore output now reflects the strength of Indonesian domestic nickel demand.

The company’s sales performance was even stronger. Nickel ore sales rose 75pc year on year to 14.6mn wet metric tonnes. This shows that domestic downstream buyers absorbed much of the additional supply. Therefore, Indonesia nickel ore production continues to benefit from the country’s internal processing expansion.

This matters because Antam’s ore supports more than one value chain. Its nickel ore feeds domestic class two nickel production and the company’s own ferronickel operations at Kolaka. Consequently, Antam nickel ore output remains important to both external downstream users and its internal processing strategy.

Indonesian Domestic Nickel Demand Is Reshaping Antam’s Business Mix

Indonesian domestic nickel demand is clearly driving Antam’s ore growth. The company’s production surge shows how strongly local processors continue to pull feedstock into the domestic market. This supports Indonesia’s long-term policy of deeper downstream integration. As a result, ore production is becoming more strategically valuable than before.

However, Antam’s ferronickel business moved in the opposite direction. Ferronickel output fell 20pc to 16,064t in nickel metal equivalent. Sales almost halved to 10,528t in nickel over the same period. Therefore, Antam is seeing a widening gap between ore strength and ferronickel weakness.

The company said rule changes in minimum sales pricing largely caused that decline. That means the problem was not simply demand destruction. Instead, market rules affected the economics of ferronickel sales more directly. Meanwhile, all ferronickel sales were exported, mainly to South Korea, India, and China.

Antam Battery Ecosystem Project Adds a New Strategic Layer

The Antam battery ecosystem project gives the company a stronger long-term growth story. Its joint venture with CATL began construction in the fourth quarter of 2025. That project aligns with Indonesia’s ambition to build a full downstream EV battery chain. Consequently, Antam is linking ore production more directly to higher-value battery materials.

This development matters because it expands Antam’s role beyond mining and traditional nickel products. The company is now tied more closely to Indonesia’s battery industrialization strategy. That could improve its strategic relevance even if ferronickel remains under pressure. Therefore, the Antam battery ecosystem project may become more important than short-term alloy sales.

The broader message is clear. Antam nickel ore output is rising because Indonesia’s downstream nickel model still demands more feedstock. At the same time, product mix and pricing rules are shifting value across the chain. As a result, Antam’s future may depend more on ore and battery exposure than on ferronickel alone.

The Metalnomist Commentary

Antam’s results show how Indonesia’s nickel strategy is rewarding upstream ore suppliers tied to domestic processing. The weakness in ferronickel also shows that not every downstream segment benefits equally. If the battery ecosystem expands as planned, Antam could become even more central to Indonesia’s next nickel phase.

Antam 1H nickel ore output doubles as Indonesia’s MHP demand surges

Antam

Antam 1H nickel ore output doubles on strong low-grade ore demand from Indonesia’s MHP plants. The miner produced 9.1mn wmt in six months. Domestic processors prioritized low-grade feed for mixed hydroxide precipitate production. Antam 1H nickel ore output doubles as processors secure supply amid rapid battery growth.

MHP growth reshapes Indonesia’s nickel feedstock flows

Indonesia’s MHP expansion is driving structural ore demand. Second-quarter output reached 4.47mn wmt, up 63pc year on year. Most volumes supplied domestic MHP producers that favor low-grade ore. As a result, ore flows shifted from export-oriented routes to HPAL-linked hubs. Forecast MHP output could hit 480,000t Ni-equivalent in 2025. Therefore, Indonesia’s battery precursor pipeline keeps tightening ore balances.

Ferronickel softens while export channels stay active

Ferronickel output fell 11pc to 9,067t Ni-equivalent in the half. Second-quarter production dropped 15pc year on year to 4,569t. However, Antam exported all ferronickel, mainly to South Korea, India, and China. Price spreads favored MHP over ferronickel in recent quarters. Consequently, asset utilization tilted toward low-grade ore supply. Antam 1H nickel ore output doubles, but ferronickel remains cyclical.

EV supply chain momentum supports long-term strategy

Antam’s battery JV with CATL targets start-up by 2026. The project anchors upstream-to-cathode integration in Indonesia. Meanwhile, ore grade trends and permitting will influence HPAL costs. Therefore, stable domestic feed becomes a strategic hedge. Antam 1H nickel ore output doubles, reinforcing Indonesia’s EV supply chain leadership.

The Metalnomist Commentary

Antam’s pivot to low-grade ore for MHP underscores where margins sit today. Watch HPAL ramp rates, ore grade drift, and policy signals. Any RKAB or environmental delays could tighten MHP and lift nickel sulfate premia.

Indonesia-China EV battery joint venture to start output by 2026

PT AnekaTambang

Indonesia-China EV battery joint venture is set to start operations in 2026, marking a milestone in Southeast Asia’s battery industry. PT Aneka Tambang (Antam) and CATL are leading the $5.9bn project, which will significantly expand Indonesia’s role in global EV supply chains. The Indonesia-China EV battery joint venture aims for 15GWh capacity by 2028, supporting up to 300,000 EVs annually.

A $5.9bn integrated ecosystem for battery materials

The joint venture begins with a 6.9GWh capacity, expanding to 15GWh by 2028. Additionally, officials highlighted potential integration with solar panel battery storage, raising capacity to 40GWh. Most of the investment—around $4.7bn—will fund nickel smelters, mining, and precursor plants in North Maluku. Meanwhile, the battery cell project in West Java accounts for $1.2bn of the total budget.

Indonesia’s mineral advantage meets China’s battery expertise

Indonesia holds abundant nickel, cobalt, and manganese, essential for EV batteries, but lacks lithium and advanced technology. Therefore, Antam partnered with CATL to secure the expertise and technology required. By 2026, smelting and hydrometallurgy plants, alongside a nickel-cobalt-manganese precursor facility, are expected to strengthen Indonesia’s midstream value chain. This partnership underscores a growing alignment between Indonesia’s resource base and China’s global battery leadership.

Energy independence and EV market expansion

The Indonesia-China EV battery joint venture could supply batteries for 300,000 EVs annually, potentially reducing fuel imports by 300,000 kilolitres per year. President Prabowo stated that Indonesia could reach full energy self-sufficiency within five to seven years, provided battery production grows to 100GWh annually. As a result, Indonesia is positioning itself not just as a raw material supplier but as an integrated EV hub.

The Metalnomist Commentary

Indonesia’s partnership with CATL cements its role in the global EV battery supply chain. However, success depends on infrastructure, environmental safeguards, and balancing resource nationalism with foreign investment. If executed effectively, Indonesia could become a strategic alternative to China-dominated supply routes.

Indonesian Nickel Ore Prices Surge Amid Tight Supply

Indonesian Nickel

Weather Disruptions and Mine Closures Drive Market Shift

Indonesian nickel ore prices have risen sharply in 2025 as domestic supply constraints tighten. Prices for 1.6pc nickel content ore with 35pc moisture reached $53/wet metric tonne (wmt) in May, up from $44/wmt in January, driven by stronger premiums. The surge is linked to extended heavy rains on Sulawesi Island since November 2024, which disrupted operations in key hubs such as the Morowali Industrial Park. Sulawesi holds about 70pc of Indonesia’s total nickel ore resources.

The government’s order for state-owned PT Aneka Tambang (Antam) to halt mining in West Papua’s Raja Ampat — a marine protected area — further tightened supply. The site, with a 3mn wmt/yr quota, produces high-grade nickel ore. Limited availability has shifted mining firms toward tender-based sales rather than bilateral deals, while large buyers offer $1–2/wmt premiums to secure volumes over 100,000wmt.

Upstream-Downstream Price Divergence

Despite the rise in nickel ore prices, downstream products have seen declines. China’s stainless steel 304 cold-rolled coil prices fell to 13,250 yuan/t in May from 13,650 yuan/t in March. Indonesia’s nickel pig iron (NPI) export prices dropped to $116/metric tonne unit (mtu) in June from $124.50/mtu in March. This divergence stems from the upstream market remaining a seller’s market since 2023, as ore supply growth lags behind expanding nickel products capacity.

Indonesia’s nickel products output — including NPI, ferronickel, mixed hydroxide precipitate, and matte — is projected to rise to 2.49mn t in nickel metal equivalent in 2025, up from 1.83mn t in 2023. Consequently, ore demand could increase from 200mn wmt to 280mn wmt in the same period.

Rising Imports from the Philippines

With local ore insufficient, Indonesian producers have increased nickel ore imports from the Philippines since mid-2023. Imports surged to nearly 10mn t in 2024, representing around 6pc of total demand, and are on track for another increase in 2025. Shipments in January–April already exceeded imports in the first half of 2024.

Philippine ore is essential for blending with Indonesian ore to achieve the required silicon and magnesium ratios for different processing technologies, including RKEF and HPAL. Changing ore specifications after 15 years of intense mining in Indonesia have made such blending critical to meet production needs.

The Metalnomist Commentary

Indonesia’s nickel ore market illustrates how environmental conditions and policy decisions can shift global supply chains. As upstream prices climb despite downstream weakness, reliance on Philippine imports will likely deepen, reshaping trade flows and influencing pricing power in the nickel sector.

LGES Exits Indonesia EV Battery Project Amid Strategic Shift

LGES

LGES exits Indonesia EV project

LGES exits Indonesia EV project, marking a significant shift in its global battery strategy.

South Korea’s LG Energy Solution (LGES) has officially withdrawn from Indonesia’s $8.4 billion Grand Package EV battery initiative.

The project originally included LGES, LG Chem, Posco Future M, Huayou, Antam, and Indonesia Battery Corporation. Plans had outlined a complete value chain: from mining and smelting to precursor, cathode, and battery cell production.

Strategic Refocus on Core Ventures and Energy Storage

LGES exits Indonesia EV project while reaffirming its commitment to the HLI Green Power joint venture with Hyundai Motor. This Indonesian JV plant has a 10 GWh annual battery cell capacity and began mass production in April 2024.

Meanwhile, LGES continues to diversify beyond the EV battery sector. It has secured energy storage system (ESS) battery contracts with Delta Electronics in Taiwan and PGE in Poland.

Indonesia Presence Maintained Through LFP and JV Assets

Despite the LGES exit from the Indonesia EV project, the company retains stakes in key Indonesian operations. Earlier this year, LGES invested in a lithium iron phosphate (LFP) cathode plant with China’s Lopal Tech.

LGES emphasized its intent to continue collaboration with the Indonesian government, particularly via its joint venture HLI Green Power. This signals a strategic recalibration rather than a full-scale withdrawal from the Indonesian battery ecosystem.

The Metalnomist Commentary

LGES’s departure reflects a broader recalibration of battery majors toward diversified revenue streams and scalable ESS markets. The company’s sustained Indonesian footprint suggests long-term positioning, albeit through leaner, more focused partnerships.

China’s GEM to Back Indonesia’s Green Nickel with HPAL Investment

Green Eco-Manufacture (GEM)

Chinese battery metals leader Green Eco-Manufacture (GEM) has entered into a groundbreaking partnership with Indonesia's PT Vale Indonesia (PTVI) to develop a high-pressure acid leaching (HPAL) project in Central Sulawesi, Indonesia. This venture aims to bolster the green energy transition in the nickel sector, a vital component of the rapidly expanding electric vehicle (EV) industry.

Key Highlights of the HPAL Project

The HPAL facility will process nickel ore supplied by PTVI to produce 66,000 tons per year (t/yr) of mixed hydroxide precipitate (MHP) in nickel metal equivalent. MHP is a precursor for advanced battery materials like nickel-cobalt-manganese (NCM) and cathode active materials (CAM), essential for lithium-ion batteries used in EVs.

Ownership Dynamics and Strategic Growth

Initially, GEM held a 70% stake in the project, while PTVI owned the remaining 30%. However, GEM’s ownership will be reduced to 25% or less, as additional third-party investors join the initiative. This strategic realignment aims to diversify financial backing and enhance the project’s scalability.

Expansion of GEM’s Nickel Ventures

GEM recently completed the second phase of its QMB nickel project in Morowali, Indonesia, achieving a total production capacity of 65,000 t/yr of nickel metal equivalent in MHP. This marks a significant milestone in its push to solidify its footprint in Indonesia’s resource-rich battery ecosystem.

China-Indonesia Collaboration in the EV Sector

The partnership reflects a broader trend of increasing China-Indonesia collaboration in the EV supply chain. Earlier this year, Indonesian mining giant PT Aneka Tambang (Antam) transferred subsidiary shares to China’s Contemporary Amperex Technology Co., Ltd. (CATL), the world’s largest EV battery manufacturer.

As the global EV market continues to expand, these collaborations are poised to make Indonesia a cornerstone of the world’s green energy revolution, leveraging its abundant nickel reserves to meet soaring demand for sustainable battery materials.