Technological Resilience in Nickel Downstreaming: Energy Policy, Critical Material Security, and Indonesia's Transition to Battery Materials
Year: 2026
Type: article
Abstract: Indonesia has emerged as a global centre of nickel downstreaming, transforming its role from a raw nickel ore exporter into a major producer of processed nickel products. However, the next stage of downstream industrialisation—particularly the development of a domestic electric-vehicle (EV) battery materials industry—raises new challenges concerning energy security, critical-input dependence, environmental sustainability, and geopolitical vulnerability. This study examines the strategic implications of alternative nickel-processing technologies through a qualitative Strategic Policy Assessment (SPA), comparing Rotary Kiln Electric Furnace (RKEF), High-Pressure Acid Leaching (HPAL), and the emerging Oxygen-Enriched Side-Blown Furnace (OESBF). The analysis evaluates these technologies across six dimensions of technological resilience: resource utilisation, energy and input requirements, critical-material and supply-chain security, environmental sustainability, industrial upgrading potential, and policy compatibility. The findings indicate that RKEF remains important for Indonesia's stainless-steel-oriented nickel industry but is highly energy-intensive and dependent on high-grade saprolite resources. HPAL provides a pathway to battery materials from limonite ores but introduces significant dependence on sulfuric acid and imported sulfur, creating new geopolitical and supply-chain vulnerabilities. OESBF, although still at an emerging stage, offers potential for technological diversification, reduced sulfur dependence, and greater flexibility in producing battery-related nickel intermediates. The study argues that Indonesia's future downstreaming strategy should move beyond capacity expansion and value addition toward a diversified technological portfolio that strengthens industrial competitiveness, energy security, environmental performance, and supply-chain resilience.
Language: English
Subfield: Metals and Alloys
Field: Materials Science
Domain: Physical Sciences
Open Access status: bronze
OpenAlex ID: W7204663522