[SMM Nickel Flash News] Indonesia's ENC Project Set to Add New Battery-Grade Nickel Supply

Published: Jul 7, 2026 18:26

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The start-up of Indonesia's Excelsior Nickel Cobalt (ENC) HPAL project, which is expected to produce its first MHP in July and refined nickel in August, marks another major expansion of the country's downstream nickel industry. While the project strengthens Indonesia's position as the world's leading battery materials hub and attracts further foreign investment, the additional 72,000 tpa of Class-1 nickel capacity is likely to increase demand for domestic limonite ore in the long term while simultaneously adding to the global surplus of battery-grade nickel. In the near term, the new supply could exert further pressure on MHP and nickel prices, potentially reducing margins across the Indonesian nickel value chain and reinforcing market concerns over oversupply amid ongoing discussions on additional RKAB quotas.

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