---
title: Nickel Downstream Processing for EV Batteries
type: technology
url: "https://www.envisioning.com/research/grid/southeast-asia__nickel-downstream-processing"
hub: grid
summary: Indonesia operates 5 HPAL plants processing nickel into battery-grade chemicals, forced by the 2020 ore export ban that reshaped global battery supply chains.
---

# Nickel Downstream Processing for EV Batteries

Indonesia operates 5 HPAL plants processing nickel into battery-grade chemicals, forced by the 2020 ore export ban that reshaped global battery supply chains.
- Technology Readiness Level: 7/9
- Impact: 4/5
- Investment: 4/5
Indonesia — Indonesia's 2020 raw nickel ore export ban is the most consequential resource nationalism policy in the battery era. By 2025, five High Pressure Acid Leaching (HPAL) plants are operational, converting low-grade limonite ore into mixed hydroxide precipitate (MHP) and nickel sulfate — the precursors for EV battery cathodes. This forced Chinese, Korean, and Japanese companies to build processing facilities in Indonesia rather than extracting raw materials.

The results are mixed: stainless steel downstream development succeeded spectacularly (Indonesia became the world's largest producer), but battery-grade processing faces environmental challenges. HPAL plants generate toxic tailings, and the energy-intensive process often relies on coal power, undermining the green credentials of the final EV batteries.

Strategically, Indonesia controls approximately 50% of global nickel reserves. The downstream processing mandate is an attempt to capture more value from this resource advantage before battery chemistry shifts (sodium-ion, LFP) reduce nickel demand. If Indonesia can solve the environmental challenges and move further downstream into cathode manufacturing, it becomes indispensable in the EV battery supply chain.

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Source: Envisioning — Technology Research Institute (https://www.envisioning.com/research/grid/southeast-asia__nickel-downstream-processing)