Indonesia's Nickel Boom Adds to Glut, Pressuring Prices Despite Long-Term EV Demand
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Indonesia has massively increased its share of global nickel supply, leading to oversupply and falling prices. Further growth is projected.
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Demand for EVs has weakened recently, with slowing sales in major markets like China and the US. This has dragged down nickel prices since nickel is key for EV batteries.
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High EV prices, lack of charging infrastructure, and waning government subsidies have hampered consumer adoption of EVs in the short term.
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Chinese destocking of battery metals after a strong 2022 has also contributed to the nickel price slide.
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Fundamental factors driving EV adoption remain in place long-term. EV technology improvements and cost declines could spur renewed growth.