Indonesia Cuts Nickel Ore Quotas by a Third, Steering Supply Toward Battery Materials
Updated
Updated · Asia Times · Jul 30
Indonesia Cuts Nickel Ore Quotas by a Third, Steering Supply Toward Battery Materials
1 articles · Updated · Asia Times · Jul 30
Summary
RKAB approvals fell to about 260 million-270 million tons in 2026 from 379 million tons a year earlier, with Weda Bay’s output cut more than 70% before mining stopped there by late May.
Jakarta paired the cuts with a policy shift: it stopped approving new plants that make only basic products such as nickel pig iron or matte, while allowing projects tied to battery-grade nickel sulfate or cathode materials.
Ore access is also being redirected. Companies moving further down the value chain can win larger quotas, with Nickel Industries receiving a higher 2026 allocation because it is building battery-material capacity.
An April pricing overhaul raised the minimum ore price and, for the first time, paid miners for embedded cobalt, iron and chromium, shifting value from processors to miners and the state.
The strategy targets a market imbalance: basic nickel products were already oversupplied, with a 2025 surplus estimated at 212,000 tons, while more advanced battery materials remain relatively tight.