Prime Minister Narendra Modi began his six-day visit on Monday, during which he is going to visit Indonesia, Australia, and New Zealand. PM Modi will meet his counterpart, Indonesian President Prabowo
Subianto, between July 6th and 8th and will further deepen the Comprehensive Strategic Partnership with Indonesia.
The visit to Indonesia comes at a crucial time when the Indian government is promoting Electric Vehicles (EVs) in all forms, including two-wheeler, three-wheeler and four-wheeler vehicles. The global energy crisis caused by the Iran-US war has forced the government to rethink and reorient its strategy to make the country less dependent on crude oil and gas.
How can Indonesia play a key role in India’s dream of achieving its EV goal?
Indonesia has the biggest supply source of Nickel, a key metal being used in the manufacturing of electric vehicle batteries. Indonesia accounts for roughly 40-45% of global nickel production and has the world’s largest known nickel reserves.
As India is aspiring to become a major EV economy in the next couple of decades, easy availability of raw material supply will play a major role in achieving that dream.
How Important Is Nickel In EV Batteries?
Nickel is the key ingredient in the manufacturing of Lithium-ion battery used in EVs. The high-capacity nickel batteries offer better storage, increase driving range, and improve battery efficiency.
Though India has nickel reserves, located primarily in Odisha and Jharkhand, the extraction remains minimal. Thus, it imports almost all of its pure nickel to meet industrial demands.
China’s Dominance
China holds a dominant position in the supply chain of EVs, with its strong mining and infrastructure. Chinese companies have been investing heavily in Indonesia’s nickel processing units for the past few years, after the country banned the export of raw ore.
India aims to reduce its dependence on China in EV supply chains and building a strong relationship with Indonesia matters a lot.
Therefore, this is the high time for India to build a stronger partnership and a strong presence in Indonesia’s nickel industry to access the key ingredient in EV battery manufacturing.
