India-Indonesia Nickel-to-EV Global Value Chain

An India-Indonesia Nickel-to-EV Global Value Chain

Observer Research Foundation

“Indian investors like Khanij Bidesh India Limited (KABIL) – the state-owned mineral procurement enterprise – and other key stakeholders in the value chain, particularly battery manufacturers, can help Indonesia secure diverse and more sustainable investment. A diversified investor mix will keep bargaining power with Jakarta, speed up technology transfer, and provide it with greater access to India’s EV market. A logical next step is trilateral supply chain cooperation with Australia—the world’s largest lithium producer—which already has a transport-decarbonisation pact with Indonesia. Linking Australian lithium, Indonesian nickel, and Indian cell-manufacturing scale could create an Indo-Pacific battery corridor.”

“Both New Delhi and Jakarta recognised the need for increased cooperation and launched a project to enhance connectivity between India’s Andaman and Nicobar Islands and Indonesia’s Aceh province. The development of the Sabang deep-sea port in Aceh could significantly lower trade time and cargo costs. The benefits of increased nickel trade should be factored into the return on investment calculation in India-Indonesia connectivity. On the sustainability front, both governments pledged at the G20 to align new mining projects with global environmental, social, and governance (ESG) norms – India’s ‘LiFE’ initiative emphasises low-carbon supply chains, while Indonesia wants its ‘green-nickel’ label recognised by Western buyers…”

https://www.orfonline.org/expert-speak/an-india-indonesia-nickel-to-ev-global-value-chain

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