Nickel Supply Chain Integration for Electric Vehicle Battery Production
Abstract
The global transition toward clean energy has positioned electric vehicles (EVs) as a cornerstone of low-carbon transportation, driving unprecedented demand for nickel a critical component of lithium-ion battery chemistries including Nickel-Manganese-Cobalt (NMC) and Nickel-Cobalt-Aluminum (NCA). As the world's largest nickel producer, Indonesia holds a strategically significant role in the global EV battery supply chain, yet the adequacy of its nickel supply for domestic EV development and the contribution of battery recycling as a secondary source remain insufficiently examined.This study analyzes strategies for fulfilling Indonesia's nickel demand for EV battery production over 2025–2030 through an integrated assessment of primary production capacity, battery recycling potential, and stakeholder roles, focusing on the Morowali industrial corridor in Central Sulawesi. Employing a descriptive qualitative method supported by quantitative data analysis including supply chain analysis and SWOT evaluation the study finds that Central Sulawesi's planned smelter capacity of approximately 3.99 million tonnes per year is structurally sufficient to meet projected domestic battery-grade nickel demand, contingent on accelerated deployment of High-Pressure Acid Leach (HPAL) technology. The study's principal contribution is the proposition and economic evaluation of a Localized Circular Economy model, co-locating battery recycling facilities with primary HPAL infrastructure in Morowali. This approach is projected to reduce logistics costs by up to 50% and generate national savings of approximately USD 4.1 million per year at a processing volume of 10,000 tonnes of spent batteries annually by 2030, while reducing carbon intensity and strengthening Indonesia's ESG credentials in global battery markets.
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