[Indonesia Sticks to Nickel Production Expansion Plan, Competitors Forced to Shut Down Mines]

According to a report from the Financial Times, a senior government official in Indonesia stated that the country will continue to push forward with its plan to expand nickel production, despite oversupply forcing competitors to close nickel mines. The country's goal is to keep nickel prices low and safeguard the long-term demand for this crucial metal in electric vehicle batteries. The Deputy Minister of Investment and Mining Coordination in Indonesia stated that by 2030, the country's capacity for battery-grade nickel is expected to double to 1 million tons. He added that the capacity for nickel pig iron used in stainless steel manufacturing is expected to increase by up to 15% from the current 1.9 million tons within three years. Over the past year, nickel prices have dropped by 30% due to increased supply from Indonesia and softening demand. At current prices of around $16,500 per ton, more than half of global nickel production is unprofitable. The head of French miner Eramet warned last month that the surge in low-cost nickel supply from Indonesia in the coming years will completely crush competitors. Australia's Wyloo Metals is shutting down nickel mines in Western Australia.