U.S. media: Growing reputation for 'dirty nickel' threatens Indonesia's electric car dream
"What started out as a dream of a boom in electric-car manufacturing has led to the consumption of more coal resources as a result." The U.S. "Wall Street Journal" published a report on the 4th, Indonesia's policy of banning the export of raw nickel means that more smelters will be built on its soil, and the country may have to go through a "coal orgy" before the arrival of a more environmentally friendly electric car era.
Nickel is one of the key materials for electric vehicle batteries, and Indonesia accounts for half of the world's nickel supply. In recent years, in order to strengthen and optimize the economic efficiency of domestic resources, the Indonesian government has adopted a "downstreaming" policy that only allows the export of important metal resources, including nickel, in the form of refined metal. 2020, the Indonesian government will ban the export of nickel, hoping to promote the expansion of foreign investment in the metal industry of Indonesia, and to set up localized industrial systems to connect the nickel industry with the electric vehicle industry. In 2020, the Indonesian government will impose a total ban on nickel exports in the hope of promoting foreign investment in Indonesia's metals industry, establishing a localized industrial system, and developing the country's electric vehicle supply chain by linking the nickel industry to the electric vehicle industry.
The Wall Street Journal argues that Indonesia's attempts to turn its valuable mineral resources into a boom in electric-vehicle manufacturing began several years ago, and that "smelters from around the globe are arriving on schedule, but the country is straying from its original climate goals." Nickel smelting requires a lot of energy, and new coal power plants are popping up to fill the energy gap, according to the report.
A report released in January by the U.S.-based environmental group Climate Rights International said that a nickel-focused industrial park in the Maluku Islands in eastern Indonesia will burn more coal than Spain or Brazil when it is fully operational.
According to the Wall Street Journal, the reputation of "dirty nickel" is threatening Indonesia's coveted economic opportunities. Last October, nine U.S. senators signed a joint letter opposing the signing of a free-trade agreement to source key minerals from Indonesia, citing environmental and safety concerns. Without a free trade agreement, electric car batteries containing large quantities of Indonesian-processed nickel would not be eligible for major U.S. tax credits. In addition, lithium iron phosphate batteries, which are already nickel-free, are gaining more favor at lower costs. This all makes Indonesian nickel resources less attractive to Western EV companies.
Sources of information:[Global Times Special Correspondent Chen Xin]
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