IEA sounds alarm over Nickel supply risks as China gains control of Indonesia’s refining sector
March 3, 2025
The International Energy Agency (IEA) has warned that global nickel supply chains are vulnerable, as Indonesia is expected to control nearly two-thirds of the world’s supply by 2030. However, 75% of the country’s refining capacity is owned by Chinese companies, which raises concerns about supply disruptions. The IEA says that if Indonesia’s supply is interrupted, other sources could meet only half of the global demand in five years, stressing the need to secure mineral supplies.
A report from C4ADS shows that China controls 61% of Indonesia’s refining capacity, with over 75% of it ultimately owned by Chinese companies. This control, along with environmental and safety concerns, poses risks to global supply chains. The complex ownership structures and reliance on coal-fired power plants make it difficult for other countries to secure an independent nickel supply, increasing concerns about environmental and social issues.
Source: Reuters
