Indonesia and China pursue R&D partnership in nickel processing

Indonesia and China reviewed the potential collaboration to build a research and development (R&D) center dedicated to processing nickel which is a core in the production of electric vehicle (EV) batteries.

On May 14, Airlangga Hartarto, Chief Economic Affairs Minister of Indonesia, and Lu Kang, the Chinese Ambassador to Indonesia, had a meeting to explore viable ways to step up bilateral cooperation in trade and investment between the two countries, according to the Jakarta Globe, an Indonesia online news platform.

Airlangga Hartarto (left), Chief Economic Affairs Minister of Indonesia, and Lu Kang, the Chinese Ambassador to Indonesia, met in the Economic Affairs Coordinating Ministry's Office, Jakarta. (Source: Embassy of the People’s Republic of China in the Republic of Indonesia)

After the meeting, the ministerial press statement revealed that the establishment of the nickel processing R&D center may possibly involve Yogyakarta-based Gadjah Mada University (UGM) and the battery metals producer CNGR, which is headquartered in Guangxi, China.

Nickel is a core in the production of electric vehicle batteries. According to the US Geological Survey report in 2024, Indonesia boasts the world’s largest nickel reserves, reaching 55 million metric tons, while its nickel mines produced an estimated 1.8 million metric tons throughout 2023.

China has always been the top among Indonesia’s foreign investors. According to the Jakarta Globe, government data show that Indonesia racked up US$1.87 billion in foreign direct investment (FDI) coming from China in the first quarter of 2024, becoming the third in Indonesia’s foreign investor ranking for the said period, with Singapore and Hong Kong claiming the first two spots.