Business · Trade · 2 hrs ago

Drought in Indonesia slows nickel output, raising risks for battery supply chains

Drought in Indonesia slows nickel output, raising risks for battery supply chains

Severe drought in Indonesia is slowing nickel production as low rainfall leads local refineries to cut output.

Indonesia is the world’s biggest production hub for nickel, a metal used to make a component in lithium-ion batteries.

These batteries power electric vehicles, including many made in China.

Reduced refinery output could add uncertainty across battery material supplies and create risks for China’s electric car supply chain.

The scale or duration of the disruption is not stated.

No further steps or timeline are given.

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CRU GroupMarket analysis firm
add uncertainty … across the battery materials value chain
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