Jakarta, INTI - The Indonesian government’s focus on the downstreaming of critical minerals has become a strategic pillar in boosting national economic competitiveness. By focusing on this initiative, Indonesia aims to increase domestic added value, attract investment, generate export revenue, and create jobs while embracing environmentally friendly technologies. The downstreaming of critical minerals, particularly nickel, plays a significant role in the global electric vehicle (EV) ecosystem.

"The downstreaming of nickel has successfully increased the export value of nickel derivative products. This is evident in the eightfold increase in export value from USD 4.31 billion in 2017 to USD 34.44 billion in 2023," said Airlangga Hartarto, Coordinating Minister for Economic Affairs, at the groundbreaking ceremony for the HPAL Neo Energy project in Morowali, Central Sulawesi, on Saturday (September 14).

Indonesia’s rich nickel reserves have positioned the country as a significant player in the global EV battery market. Data from the Ministry of Investment shows that by mid-2024, total investment in nickel downstreaming had reached USD 30 billion, particularly in smelter construction and EV battery plants. The global demand for lithium-ion batteries has surged in recent years, with over 2,000 GWh of capacity used to power 40 million EVs and thousands of energy storage projects.

Indonesia is poised to supply 210 GWh of EV batteries annually, further solidifying its role as a critical supplier of nickel and other essential minerals. "We are in discussions with the United States, the European Union, Canada, and Australia about critical minerals agreements. A collaboration between Indonesia, Canada, and Australia would significantly strengthen the EV ecosystem, especially in terms of lithium and nickel production. We are also exploring sodium-based technology," said Airlangga.

One of the highlights of this critical minerals initiative is Neo Energy's investment in the construction of Indonesia’s first High-Pressure Acid Leaching (HPAL) smelter. This facility, fully powered by renewable energy, will process nickel ore (limonite) into Mixed Hydroxide Precipitate (MHP), a key component in EV battery cathodes. The HPAL Neo Energy project is expected to increase Indonesia's MHP production capacity by 120,000 MT annually.

The HPAL smelter is located in the Neo Energy Morowali Industrial Estate (NEMIE), an industrial park designed for green energy-based mineral processing. All operations within NEMIE will utilize renewable energy sources such as hydropower and solar energy. The estate has already secured its Industrial Estate Business License (IUKI) as of August 2024, providing a solid legal foundation for potential investors.

Minister Airlangga praised Neo Energy’s efforts, emphasizing that the project supports Indonesia's zero-emission goals for mining and industry. "I've noticed that all the heavy equipment here is fully electric, which aligns with our target of reducing emissions. This area is also recognized as a National Strategic Project, so collaboration with the Indonesian National Armed Forces (TNI) and National Police (Polri) is critical to protect this national asset."

At the same event, Airlangga awarded land certificates to 10 local residents and inaugurated the groundbreaking ceremony with a plaque signing.

The rapid industrial development in Morowali Regency has significantly contributed to the region’s economic growth. In 2023, Morowali's GDP grew by 20.34%, with the manufacturing sector accounting for 72.72% of the total. The per capita GDP in Morowali reached IDR 927.23 million in 2023, the highest in Indonesia, driven by commodity exports.

The event was attended by the Chief of Staff of the Indonesian Army, the Governor of Central Sulawesi, the Acting Regent of Morowali, representatives from the Coordinating Ministry for Economic Affairs, the Indonesian Army’s Logistics Assistant, and top executives from Neo Energy.

Jakarta, INTI - The Indonesian government’s focus on the downstreaming of critical minerals has become a strategic pillar in boosting national economic competitiveness. By focusing on this initiative, Indonesia aims to increase domestic added value, attract investment, generate export revenue, and create jobs while embracing environmentally friendly technologies. The downstreaming of critical minerals, particularly nickel, plays a significant role in the global electric vehicle (EV) ecosystem.

"The downstreaming of nickel has successfully increased the export value of nickel derivative products. This is evident in the eightfold increase in export value from USD 4.31 billion in 2017 to USD 34.44 billion in 2023," said Airlangga Hartarto, Coordinating Minister for Economic Affairs, at the groundbreaking ceremony for the HPAL Neo Energy project in Morowali, Central Sulawesi, on Saturday (September 14).

Indonesia’s rich nickel reserves have positioned the country as a significant player in the global EV battery market. Data from the Ministry of Investment shows that by mid-2024, total investment in nickel downstreaming had reached USD 30 billion, particularly in smelter construction and EV battery plants. The global demand for lithium-ion batteries has surged in recent years, with over 2,000 GWh of capacity used to power 40 million EVs and thousands of energy storage projects.

Indonesia is poised to supply 210 GWh of EV batteries annually, further solidifying its role as a critical supplier of nickel and other essential minerals. "We are in discussions with the United States, the European Union, Canada, and Australia about critical minerals agreements. A collaboration between Indonesia, Canada, and Australia would significantly strengthen the EV ecosystem, especially in terms of lithium and nickel production. We are also exploring sodium-based technology," said Airlangga.

One of the highlights of this critical minerals initiative is Neo Energy's investment in the construction of Indonesia’s first High-Pressure Acid Leaching (HPAL) smelter. This facility, fully powered by renewable energy, will process nickel ore (limonite) into Mixed Hydroxide Precipitate (MHP), a key component in EV battery cathodes. The HPAL Neo Energy project is expected to increase Indonesia's MHP production capacity by 120,000 MT annually.

The HPAL smelter is located in the Neo Energy Morowali Industrial Estate (NEMIE), an industrial park designed for green energy-based mineral processing. All operations within NEMIE will utilize renewable energy sources such as hydropower and solar energy. The estate has already secured its Industrial Estate Business License (IUKI) as of August 2024, providing a solid legal foundation for potential investors.

Minister Airlangga praised Neo Energy’s efforts, emphasizing that the project supports Indonesia's zero-emission goals for mining and industry. "I've noticed that all the heavy equipment here is fully electric, which aligns with our target of reducing emissions. This area is also recognized as a National Strategic Project, so collaboration with the Indonesian National Armed Forces (TNI) and National Police (Polri) is critical to protect this national asset."

At the same event, Airlangga awarded land certificates to 10 local residents and inaugurated the groundbreaking ceremony with a plaque signing.

The rapid industrial development in Morowali Regency has significantly contributed to the region’s economic growth. In 2023, Morowali's GDP grew by 20.34%, with the manufacturing sector accounting for 72.72% of the total. The per capita GDP in Morowali reached IDR 927.23 million in 2023, the highest in Indonesia, driven by commodity exports.

The event was attended by the Chief of Staff of the Indonesian Army, the Governor of Central Sulawesi, the Acting Regent of Morowali, representatives from the Coordinating Ministry for Economic Affairs, the Indonesian Army’s Logistics Assistant, and top executives from Neo Energy.