Business · Trade · 2 hrs ago
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.
A severe drought in Indonesia is slowing output of nickel, a key material used in electric vehicle batteries.
Reduced production at local nickel refineries could create risks across China’s electric car supply chain.
Indonesia is the world’s biggest production hub for nickel.
Market analysis firm CRU Group said lower output could add uncertainty across the battery materials value chain.
- Who
- Indonesian nickel refineries and the electric vehicle battery supply chain are affected.
- What
- Drought is slowing nickel output, creating risks for battery materials supply.
- When
- The report was published on November 3, 2026.
- Where
- Indonesia, with potential effects across China’s electric car supply chain.
- Why
- A sharp drop in rainfall is causing local nickel refineries to reduce output.
This story does not have two clearly opposing sides.
A sharp drop in rainfall in Indonesia caused local nickel refineries to reduce output.
SCMP reported that Indonesia’s severe drought was slowing nickel output and could affect China’s battery supply chain.
- Country
- Indonesia
- Commodity
- Nickel
- Production position
- World’s biggest production hub for nickel
- Affected facilities
- Local nickel refineries
- Publication date
- November 3, 2026
What people are saying
add uncertainty … across the battery materials value chain