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View all search resultsSouth Korea seeks incentives to deepen nickel partnership with Indonesia
Nickel-based batteries used by many South Korean manufacturers face increasing competition from lithium iron phosphate (LFP) batteries, which contain no nickel and are generally cheaper to produce.
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A worker installs the battery of a Hyundai IONIQ 5 electric car on April 6, 2023, at the Hyundai Motor Manufacturing Indonesia (HMMI) assembly plant in Cikarang, West Java. (JP/Rachmat Kurniawa)
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outh Korea is seeking incentives and regulatory support from Indonesia for nickel-based batteries as Seoul looks to deepen cooperation in critical minerals and strengthen the two countries’ electric vehicle supply chain.
The proposal, raised during a discussion with the South Korean Embassy last week, came as nickel-based batteries face growing competition from cheaper alternatives that do not use the mineral, potentially weakening a key pillar of South Korean manufacturers’ partnership with Indonesia, the world’s largest nickel producer.
“We are really looking to the Indonesian government to provide incentives and ease regulations on batteries using nickel,” Uhm Taeho, counsellor and political section chief at the South Korean Embassy, told reporters on Aug. 26 in Central Jakarta.
Uhm said Seoul had also raised the issue with the Indonesian government, building on a critical minerals partnership formalized during President Prabowo Subianto’s first state visit to South Korea from Mar. 31 to Apr. 1.
Critical minerals was one of the 10 memorandum of understanding (MOUs) witnessed by Prabowo and South Korean President Lee Jae Myung during their bilateral meeting in Seoul. The partnership covers trade and investment in key projects, environmental standards and mine rehabilitation.
Read also: Indonesia’s nickel at a crossroads in the EV battery race
The request comes as South Korea, home to some of the world’s largest EV battery manufacturers, seeks to maintain its position in a rapidly expanding global EV market, which rose 21 percent in 2025 alone, according to Reuters.
