Nickel Prices Need To Be Balanced To Encourage Downstreaming

Illustration (Photo: Doc. ANTARA)

JAKARTA - Deputy for Investment and Mining Coordination of the Coordinating Ministry for Maritime Affairs and Investment Septian Hario Seto stated that the government needs to balance nickel prices in order to attract investment in the downstream battery and electric vehicle industry.

"So we also have to balance not only in terms of upstream or mining (business actors), but also in terms of downstream interests (manufacturers)," said Septian Hario Seto as quoted by ANTARA, Thursday, March 1.

According to him, if the price of nickel is too high, then the price of battery as a product becomes a commodity will also be expensive.

He said this would also have an impact on the high price of electric vehicles so that the level of use decreased.

In addition, Septian said that if the price of nickel remains high, industry players will look for alternative raw materials for the manufacture of electric vehicle batteries, such as Lithium-Ferro-Phosphate or LFP, thus affecting demand for nickel in the future.

"If we continue, the price will remain high, yes, the downstream (industry) will not grow," he said.

He emphasized that the government's goal is to build an electric vehicle battery ecosystem from upstream to downstream, so that the balance of nickel prices as raw materials needs to be maintained.

Through these efforts, Septian hopes that the government can provide favorable conditions for both the players in the mining, smelting, battery manufacturing industry, and the vehicle manufacturing industry.

Finally, the price of the electric vehicle (EV) can be cheaper and more affordable for the community. So, our domestic industry can also grow competitively," he said.